Sales of depreciable assets where whole assets cease to exist. were shown in the capital gain schedule in ITR 6
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Quick Summary
This discussion clarifies how to report the sale of depreciable assets in ITR 6, particularly when the entire asset block is sold. According to Section 50 of the Income Tax Act, 1961, such sales result in short-term capital gains or losses, and no further depreciation is applicable to that asset block. The user is seeking guidance on whether these gains should be classified under 'deemed capital gain' or 'other' within the capital gains schedule of the ITR.
If the whole of the block of asset is sold then there is short-term capital gain or loss on sale of block of assets. And no depreciation shall be allowed from such block of assets.