banner_ad

Treatment on profit on sale of Fixed Assets ...Urgent Sir!!

This query is : Resolved 
Profile Image

Profile Image

(Querist)
28 September 2010 Respected Experts,
I have a doubt on treatment of profit on sale of Fixed Asset. There is a block of asset which consists of 10 assets. One asset in that block has been sold at a profit. As per Income tax act the profit cannot be charged to p&l account until the whole block of asset w.d.v. becomes zero. In my case also the whole block of asset doesnt come to zero, therefore i have to credit the profit on sale of fixed asset to that block. I want to know how i can bifurcate the profit amount to other 9 assets which are existing. Is it based on the opening w.d.v. balance of the individual assets or if there is any addition done during the year even that has to be added with the opening w.d.v. Pls. clarify me. Thanks for helping me. With regards, Rajesh.
Profile Image

Mouli

Profile Image

Mouli (Expert)
28 September 2010 No need to bifurcate the profit. As the block is in existence so please deduct sale amount from the block. for calculation of depreciation you need the bifurcation.
Profile Image

CMA. Subhash Kumar Jha

Profile Image

CMA. Subhash Kumar Jha (Expert)
28 September 2010 Why you want to bifurcate the profit.

Simply deduct the sale proceeds from the value of the block of asset.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
16 May 2026
Audit clerk

mgirt & co

Bengaluru

CA Inter

View Details