banner_ad

Capital gain on Sale of depreciable assets

Tax queries 5990 views 1 replies

When a depreciable asset being a machine  has sold from a Partnership Firm for an amount exceeding/lesser than its written down value, whether it is taxable as a capital gain/loss or business income/loss. (Machinery Acount contains other machine Also)

What is the amount to be deducted from machinery account ?  Either WDV of the same Machine or Net sale proceeds

Replies (1)
Friend, As per Income Tax Act, any difference between sale proceeds and WDV of the machinery will be dealt in following ways : a) still other machinery exists in the block - reduce the sales proceeds from the WDV of the block b) still other machinery exists in the block but sale proceeds exceeds WDV of entire block - the excess of sale proceeds over WDV of the block will be treated as "Short term gain/loss" c) no other machinery in the block other than sold one - the gain/loss from the sale transaction will treated as only "Short term gain/loss" Net sale proceeds = Gross sale proceeds - exps. incurred in connection therewith


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
05 May 2026
Accountant

Sanjay K Pathak & Associates

Noida

Graduate (Any)

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
11 May 2026
AUDIT INTERN

M/S K.K.KHANNA AND COMPANY

Noida

CA Foundation

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details