Capital gain

HI, AS GIVEN FACTS BY U, IT SEEMS THESE TRUCKS ARE USED FOR COMMERCIAL PURPOSES. THUS IT CAN NOT TERMED AS A CAPITAL ASSETS UNDER INCOME TAX ACT. THEREFORE CAPITAL GAIN TAX WILL NOT ATTRACTED.

If the truck is not a part of stock in trade then capital gain will be attracted......it will be a capital asset...but no indexation benefit can be claimed....as the firm must be claiming depreciation on it....

for trucks owned for business purpose then depriciation was claimed in previous years, and on depriciable assets "short term capital gains/loss" are applicable. 

Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss.

Capital gain Provision Will be attracted and it will be termed as a Short Term Capital Gain/Loss....

Please refer to section 50 of Income Tax Act, 1961, depreciable assets falls under the ambit of STCG/STCL. Sale consideration has to be reduced from the block of vehicles in this case.

Originally posted by : CA Saiyum khan
	Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss.

 Agreed with CA. Saiyum Khan

if it will be depreciable assets it would be treat  as short term capital gain.

Originally posted by : CA Saiyum khan
	Sales consideration of the truck being sold would be reduced from the opening WDV of the block of assets i.e. commercial vehicles. If the consideration exceeds opening wdv then there would be short term capital gain other wise the depreciation would be chargeable on the balance amount of WDV. If the said truck is the last asset of the said block the short receipt would be claimed as short term capital loss.

AGREED WITH CA.SAIYUM KHAN