Dear Sir/Mem.
We are partnership firm and we depreciate charge on fixed assets as per income tax. My question is that we have sold car at Rs 4,69,000 and our books opening (1.4.2020) of fixed assets car is 5,87,045.will be treet as capital loss or will be treat revenue loss.
kindly update on this.
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Loss on sale of fixed assets.
Replies (11)
Quick Summary
as per income tax law depreciation provieded on block of asset where in case sale of car during the year the depreciation not provided and the whole amount of sale dedeuted from wdv of asset where the diffurence result to gain then it is treated to capital gain or if it is loss then it should be treated to capital loss . in your case the loss on car sale treated as a capital loss.
Unless your block is finished capital gain/loss is not calculated
You should provide depreciation for the cumulative period and then deduct the sale proceeds and treat as capital loss
If there is single asset i.e. Car in the block then deduct Sale proceeds from opening WDV. that is 5.87-4.69. here loss has occurred and loss is capital loss.
if there is more than one asset in the block then deduct sale proceeds from opening WDV then on balance amount if any charge depreciation.
if there is more than one asset in the block then deduct sale proceeds from opening WDV then on balance amount if any charge depreciation.
It is a capital loss as the loss is realised on sale of fixed assets.
Not revenue loss as revenue loss is realised from sale of goods and services.
It is a capital loss as the loss is realised on sale of fixed assets.
Not revenue loss as revenue loss is realised from sale of goods and services.
Respected All
Thank you for sharing your valuable feedback on my quarries. Well, it will be treated as capital loss. But we charged depreciation at the rate of 15% every year as per income tax rate, still will it be capital loss.
Thank you for sharing your valuable feedback on my quarries. Well, it will be treated as capital loss. But we charged depreciation at the rate of 15% every year as per income tax rate, still will it be capital loss.
Yes, as it is a capital asset. even though we charge dep on it. still it will be capital loss.
Even though you charge depreciation, it is regarded as capital asset. As whether asset is short term or Long Term that is dependent on a holding period.
It's an capital loss condition
Yes it is capital loss,it is not revenue loss though, depreciation charged is treated as revenue expenditure.
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