Section 50 implication

Devendra (Chartered Accountant) (4775 Points)

24 August 2011  


M/s ABC Pvt. Ltd. has sold a machinery for Rs. 3.80 lacs. WDV of the machinery is Rs. 2.50 Lacs. The Profit on Sale of Fixed Asset is Rs. 1.30 lacs. While calculating the Income from Business the Profit on sale of Fixed Asset shall be deducted. Then profit shall be taxed as Capital gain u/s 50 of the IT Act, 1961. ie Rs 1.30 x 30% = Rs. 39000. Whether the above calculation is correct.

Please guide.