Capital gain on sale of depreciable asset

Tax queries 622 views 4 replies
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Student
59 Points Joined December 2009

Opening WDV of Car: Rs.4,10,143/-

Sale Consideration ( 24/11/2016) : Rs. 5,00,000/-

Depreciation has been charged on car in Prevous financial years.

What will be the tax treatment of the above transaction reagrding capital gain and disclosure in financial statements?

Note: Assesse has purchased some new assets (Medical Equipments, instruments ,etc) during year on 01.11.2017. Will it make any difference on tax treatment?

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On 24 October 2017 at 21:29 Report
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Managing Partner at TAXounting
8742 Points Joined November 2013
As per income Tax
Since block of asset ceases to exist so STCG will be 500000-410143 = 89857
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On 24 October 2017 at 22:26
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Managing Partner at TAXounting
8742 Points Joined November 2013
Note: It has been assumed that In block of car there is only 1 car
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On 24 October 2017 at 22:28
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Student
59 Points Joined December 2009

New machinery Purchased and the old car sold will be in the same block...

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On 25 October 2017 at 08:09
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Managing Partner at TAXounting
8742 Points Joined November 2013
No it will be of different block
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On 25 October 2017 at 08:22


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