M/S RUCHI POLYPLAST,Proprietorship....I WANT TO CLOSE MY BUSINESS AS ON 22/12/2017.......TOTAL 15 % BLOCK ASSET WDV RS.420000 AS ON 31/3/2017.....I SELL ALL ASSET FOR RS.560000 ON 22/12/2017. THEN DEPRECIATION APPLICABLE OR NOT & WHICH RATE.....CAPITAL GAIN PROVISION APPLY IF ASSETS PERIOD OF HOLDING MORE THAN 3 YR....
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Closure of business and sale of business asset
Replies (10)
As per Section 50 of Income Tax Act,1961 as u sold all your assets and now your block ceases to exists there no depreciation will be charged for Financial Year 2017-18. Also there will be a Short Term Capital Gain as per Section 50 as your block ceases to exists. There is no relevance of 3 years Holding period for Depreciated Assets as per Block.
CAPITAL GAIN HOGA YA BUSINESS INCOME MANA JAYEGA?
Obviously Capital Gain Mam.
But u also have the option to get exemption from that capital Gain Tax.
BT SIR WDV 420000 ,PURCHASE PRISE =720000 AND SALE RS 560000....
SECTION 54 KE EXEMPTION MILENGE?
Mam as your Purchase price is 720000.
You had already taken a benefit as a depreciation every year.
Today your asset value is 420000 and you had gain more than that. Thats why it is taxable.
As in Block Type of asset it is a group of assets.
If your block ceases to exists and you had a gain then you will be liabe for tax.
Also regarding Exemption as you can invest in 54 sections.
SORRY ....IF U DONT MIND SIR CAN I CALL U ......M CONFUSE
Sorry i wont share here my no.
But u can get in your personal msg.
Check over there.
140000 will be short term capital gain .... simple..no depreciation will be available
NO, Its a Taxable amount.
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