Hi
When an asset is bought and depreciated accordingly for 3 years and sold without depreciation for the held for sale period, i.e., the third years carrying amount minus sale proceeds (we have a balance). According to indian tax provisions, is it called balancing allowance where it is also considered for claiming tax
(Year 1 TAD+ Year 2 TAD+ Year 2 carrying amount (opening balance of Year 3) - sale proceeds gives Balancing allowance) x corporate tax rate?
Note: asset classified as Held for sale for 12 months)
Txs
CAclubindia
