Friends,
We have profit on sale of asset and loss on sale of asset in our financial accounts. For purpose of computation of total income under Income Tax Act,
1) Profit on sale will be deducted from Business Income
2) Loss on sale will be added back for business income
3) Will profit on sale deducted from business income offered to tax under long term / short term capital gain
4) Will loss on sale, whether long term or short term added back to business income above be deducted from long term / short term capital gain. Please enlighten.
CAclubindia
