Capital gain on Sale of depreciable assets

6008 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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details