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Does loss by theft of fixes assets

Atharv Sankliya (1359 Points)

23 December 2021

does loss by theft of fixes assets which is recovered after 1 yr is taxable or not ??

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6 Replies

CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 23 December 2021

Please share more details about your query. Whether you are asking from GST or Income Tax perspective?

Atharv Sankliya (1359 Points)
Replied 23 December 2021

Income tax

yasaswi gomes (My grammar is 💯 good I) (7296 Points)
Replied 23 December 2021

Impairment loss is tax exempt. I’m not aware of the rates but sure they are available online,

yasaswi gomes (My grammar is 💯 good I) (7296 Points)
Replied 23 December 2021

But did you forget insurance is there like I did. Yes can claim that. If not insured then read the scope of impairment standard and when qualifying claim tax

yasaswi gomes (My grammar is 💯 good I) (7296 Points)
Replied 24 December 2021

Merry Christmas you know accepting impairment is subjective because carrying amount will decrease and recoverable amount can be higher. But what if value in use gives impairment. Top of that impairment is reduction of assets or cgu value. Using substance over form, economic reaality is urging us to impair it under conditions and people need to go through court of law to claim tax incase if asset is not insured

yasaswi gomes (My grammar is 💯 good I) (7296 Points)
Replied 24 December 2021

Did anyone understand what I was saying?

Tax loss cannot be claimed not unless asset is written off.

Carrying amount will become half while VIU does not have restrictions of calculating Estimated Cashflows and FVLCD is zero naturally making the VIU is highest..

So 1000 inr worth 2 machines, 500 worth one is stolen, viu is 400

then impairment = 500-400= 100.

This you have to file in the courts to claim tax loss. How does this sound like?