Brought assets loss/ profit in next year

Efiling 162 views 2 replies

Rishi

Others

365 Points Joined September 2015

SIR,

SUPPOSE, I HAVE AN ASSET A CAR AS LAST YEAR BALANCE IN DEPRECIATION CHART FOR A.Y. 2017-18, BUT THIS ITEM HAS BEEN SOLD OUT BY LOSS OF 20000/- IN CURRENT F.Y. ON 25TH APL 2016. AFTER THIS I BOUGHT AN ANOTHER CAR OF COST RS. 140000/- .ON FEB-2017. MY QUESTION IS, SHOULT I INCLUDE AS ITS BALANCE VALUE (ABOVE MENTIONED LOSS I.E. 20000/-) IN THIS YEAR I.E. A.Y. 2017-18. HOW CAN I BROUGHT THIS LOSS IN MY DEPRECIATION CHART FOR A.Y. 2017-18

THANKS

Replies (2)

Vikas Agrawal

28 Points Joined June 2017

there is concept of block of assets under income tax..you can make adjustments for purchase/sale in such block only..coz once any asset becomes the part of block they ceases to exist separately

Pankaj Goswami

CA-FINAL

422 Points Joined April 2014

Dear Rishi,
simply make addition of a new asset and in deduction column reduce the amount actually received I.e. cash amount against sale. Depreciation will be charged on balance amount. now for charging depreciation opening balance of block less cash received against sale and another part, addition according to the period of holding.