We are partnership Firm and we have acquired truck some 10 years back and claimed depreciation every year now this year we sold the same at Rs. 40000, WDV as per books is 20295. What will be the tax treatment
18 January 2011
If there is no other asset in the block, which is being depreciated at the rate applicable to the truck, then Rs. 19705/- shall be treated as Short Term Capital Gain on which normal rate of tax will be applicable.
In other case when you have any other asset in the same block , then the block will be reduced by Rs 40000/-. If balance is positive amount , on this you have to provide depreciation.
In case block value shows negative balance , such balance will be treated as STCG.
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