Profit on Sale of Fixed Asset

In ITR - 6 for COMPANY (tax audit case), thaere is book profit on sale of depreciable fixed asset.

Block exists and as per sec 50, there is no capital gain.

My query is where to deduct this profit on sale of fixed asset in ITR 6 computation of tax liability ?

Please point me to schedule (of ITR) and line number please

Shruthi

Replies (7)

U no need to deduct income on sale of fixed assets u need to add in other source incomes

Thanks Manishji, but do I enter negative value there ?

Actually let me elaborate :-

As at 1.4.18, block TRUCK = 20 lacs

On 1.4.2018, TRUCK # 1 sold for Rs 5 lacs, while depreciated book value of Truck # 1 was 4 lacs

So there is book profit of Rs 1 lacs. This is added in other income to arrive at book profit for 18-19, lets say Rs 10 lacs

Now when computing tax payable, this profit on sale of Truck # 1 (i.e Rs 1 lacs) needs to be deducted from book profit of Rs10 lacs.

In the section Profit & Loss Row - 14 point (v) mentioned by you, it seems profit is being added to computation and not deducted as I think it must be.....

Please correct me if I'm wrong, but as per Section 50, if block wdv at end of FY is not zero then capital gain on depreciable asset is NIL....

Shruthi

That's for profit and loss account. Exclude that profit here...(attached)

thanks Manishji for your valuable time. I will try entering here.

regards

Shruthi

Happy to help ...
Under which section and Head, Profit on sale of Assets to be deducted from PGBP?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details