Hi.
Our Company is planning to sale of machineries which was purchased 10 years back. No depreciation was provided since the purchase of the machines because company has not started its commercial production as yet. Sale of the machineries will effect an amount of Rs. 30 crores loss. My question is
1) 30 crores loss is LONG TERM or SHORT TERM LOSS ?
2) Above loss can be adjusted with another Long Term Capital Gain ???
Thanks
Avijit
Loss or Gain will be Short Term because the asset is Depreciable....and it doesn't matter that you could not claim depreciation because it was not used in business....
Such Short Term Capital Loss can be set off by STCG or LTCG....
as per section 71B,STCL can be set off against any income under the head capital gains and it can be carried forward for 8 years.
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