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