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Profit on sale of Depreciable assets

Others 671 views 3 replies
There is one machinery in 15% block and WDV of machinery as on 1.4.2020 is Rs. 2,00,000. which is sold as on 5.6.2020 for Rs. 2,20,000. New machinery is purchased on 15.12.2020 for Rs. 8,00,000.
1. What is the treatment of profit in sale of machinery in income tax where block exist.
2. How much amount to be deducted from block to calculate the depreciation.
Replies (3)
Profit/loss on sale of fixed assets is taxable under the head capital gain. If such asset is depreciated asset then profit or loss on such asset would be taxable as short term capital gain/loss at the time of such block of assets became Nil or WDV goes to zero or negative only.
2. Opening wdv of the asset
for deprecation need to calculate upto date of sale
@ subhani mulla, Sir in this case neither the block of assets became nil nor the WDV goes to zero. So, can we show it in the PGBP as profit on sale of FA
@ sudhanshu, i told in the general case
as per the above case the profit should be taxable under the head PGBP why because the block has not become zero


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