A Pvt. Ltd. Company having WDV of P&M Rs. 83,384 as on 01/04/2016. It sold this P&M for Rs. 125000 on 01/06/2016 (having WDV on 1.4.2016 Rs. 83,384) Till date of Sale i.e. 01/06/2016 Depreciation become Rs. 2,564 for 62 days. Hence profit on sale of P&M becomes Rs. 44,180 (1,25,000-83,384+2564) as per books of accounts. However as per IT WDV value as on 1/4/2016 Rs. 5,10,000 then after deducting sale proceeds Rs. 1,25,000 Depreciation on Block of P&M becomes 57,750. (please note that block of asset is not nil then Capital Gain becomes nil)
What treatment will be in Income tax computation and iTR
in which point of schedule BP or Computation of income from business & profession Profit on sale of Depreciable Asset should be deducted.
Thanks
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