Easy Office
LCI Learning

Treatment of sale of depreciable asset in income tax and companies act

This query is : Resolved 

02 October 2023 As per section 50 of the income tax act if the block still exists, the sale of asset will not be taxable.
But when we sell a particular asset the will be profit or loss in the P&L a/c.

I want to ask the taxation of the profit shown in the books.
and if not taxable , how should we show it in ITR 6, should i even show it in P&L ?

02 October 2023 Show it in P&L in the books, while income tax computation exclude it from taxable income.

02 October 2023 Thank you for the answer sir.
Can you please tell me how i can exclude this income from ITR 6,
I tried looking in schedule BP and Schedule other information, but i did not find a column that excludes income from profit and loss and does not show it anywhere else.
Once again thank you for the help

02 October 2023 Go to schedule BP and exclude it.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link

Similar Resolved Queries


Unanswered Queries