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Capital gain on sale of depreciable asset

Tax queries 657 views 4 replies

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?

Replies (4)
As per income Tax
Since block of asset ceases to exist so STCG will be 500000-410143 = 89857
Note: It has been assumed that In block of car there is only 1 car

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

No it will be of different block


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