Capital Gain

A power utility had few number of old diesel generating set. The original cost of the same is Rs.23.00 Crores. The WDV value as on 01.04.2008 was Rs.5.23. The units was sold during 2008-09 at a cost of Rs.8.79. Proportaion depreciation for 2008-09 is Rs.1.20 Crores.

Help me for calculation of capital gain tax for 2008-09. This is urgent.

Replies (3)

short term capital gain = [(5.23-1.20)- 8.79]= 4.76 crores

Mr. Sandip

Year in which assets is sold depreciation will not be allowed. Than second point  if Sales the assets above WDV there will be business profit. and above cost price will be the STCG if block is NIL In other case If U hav other assets in the same block U calculate like this : 

1. 01..04                                                        WDV

2, addition   180 days or more        (+)

3. sales consideratiobn if any         (-)

    ( out of WDV & addition )

4. Toal ( 1+2-3 )

a.  ( depreciaton  on this value at full rate )          

5. Addition less than 180 days     (+)

6. Sales consideration                   (-)

   ( out of addition less tan 180 days)

7. Total

b.  (depreciation 1/2 rate on less than

      180 days ( 5-6)

7. Total ( 4 +7)

8. Total Depreciation a +b

WDV 31.03.  ( 7-8)

U may calculate in this manner

Surana, Chennai

9952967237

CALCULATION OF STCG

WDV 1.4.08                           5.23

LESS: SALE VALUE           8.79

STCG                                   3.56

DEP.NOT ALLOWABLE IN THE YEAR OF SALE. IF ANY NEW ASSETS HAVE BEEN PURCHASED IN THE SAME BLOCK, THE COST OF THE NEW ASSETS WILL BE LOWERED BY 3.56 & NO STCG WILL BE TAXABLE.

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