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Could anyone help me with this doubt?
There was property purchased by company in year 1991 on which the co. Is claiming deprection.. the wdv of the propety as on march 2010 is Rs.2,00,000. The co. Stops claiming depn after 2010 and in march 2013 the co. Sells off the property for 50,00,000.
My doubt in this is under wat head the co. Should account the income and by wat amount??
Replies (5)
Company cannot go on with this connotion of not claiming depreciation as it is mandatory to claim the same.
And as far as the sale is concerned it will go under the head Capital Gains as it is not a recurring item to have an impact on P&L.
It is mandatory to claim depreciation since 2002-03. Wdv will be calculated after deducting dep of all the years even though it has not been charged to pl. Profit will be capital gain
It will be considered short term or long term?
you need to provide depreciation since 2002-2003.If so you did it,any gain arise there on shall be taxable as short term capital gain.Remember in case of depreciable asset even though it is long term capital asset, any gain arise on it shall be treated as short term capital gain.
Thank u everyone!!thank u so much
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