Sir,
In case an assessee use Motar car for business purpose and it met an accident and fully damaged. Subsequent year 60% of Insurance claim has been received.
Now How to treat Fixed Asset in Motar car for Last Year and How it was accounted the claim received in subsequent year ??
Dear Dhamodharan,
The amount received by the assesee on account of Insurance claim i.e. whatever amount comes out as 60% would be considered as the sales price of the asset... and accordingly compute capital gains after taking into consideration the WDV of an asset. Apply sec. 50 and 45(1A).
Best Regards,
CA Lovely Arora
ca.lovelyarora @ gmail.com
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