Accounting Treatment

As per Accounting books :

Bank    a/c    Dr.  800.00

              To Moped                   500.00

              To P&L                        300.00

As per IT :

The entire block value will be             2000 

Less : Asset sold                                  800

Show the Closing Block WDV at       1200

So profit will differ in both the cases.

YES THE PROFIT WILL DIFFER . IT WILL BE ADJUSTED AS PER IT RUES WHILE CALCULATING PGBP

The profit is not taxable under "Capital Gain" as the block of 15% is not ceased.

The Depreciation on Rs.1500 (scooter's depreciation in p&L A/c) will be disallowed while computing the Profit as per IT and Depreciation on net block (ie [(1500+500)-800]*15% will be allowed as depreciation to arrive at the income chargable under PGBP.