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Loss of asset by theft

07 October 2019

Dear sir,
One my asset vehicle has been stolen by some third party from my office, how I have to treat this transaction in books and also in income tax

Please need urgent

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2 Replies

Kapadia Pravin (17249 Points)
Replied 07 October 2019

If insurance is there , claim is possible.

Otherwise write it off as Loss

Suresh Thiyagarajan (Student) (3986 Points)
Replied 08 October 2019

1. From IT angle whatever the amount you have claimed from Insurance will be considered as sale consideration as per sec 45(1A).
2. Any gain or loss will be taxable as capital gains.
3. In case of depreciable asset sale consideration will be put in deduction and if it is the only block of asset then the difference will be charged to tax under sec 45(1A). Or if the sale consideration exceeds the WDV then it will be taxable too.
Please correct me if the above solution has an alternative view.