Does loss by theft of fixes assets

does loss by theft of fixes assets which is recovered after 1 yr is taxable or not ??
Replies (6)
Quick Summary
This discussion explores whether the loss of fixed assets due to theft, even if recovered later, is taxable. It delves into the nuances of income tax, specifically regarding impairment loss, which is generally tax-exempt. The conversation also touches upon the role of insurance and the complexities of claiming tax losses when assets are not insured, highlighting the subjective nature of impairment and the potential need for legal recourse.

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

Income tax

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

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

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

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? 

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