22 September 2011
WHAT IS THE RULES FOR REVALUATION OF CAPITAL ASSETS , CAN WE RE-VALUATE CAPITAL ASSETS AFTER CLAIMING THE DEPRECIATION ON THE ASSETS AND THE DEPRECIATED VALUE IS LESS THEN MARKET VALUE OF ASSETS , PLEASE CLEAR WHICH SECTION COMES UNDER THIS RULE.
22 September 2011
SIR THAT IS TRUE BUT MY QUERY IS THAT WHEATHER A DEPRECIATE VALUE OF MACHINE IS RS. 2500/- BUT MARKET SALE VALUE IS RS.23450/- IN THAT SITUATION SALE OF MACHINE PROFIT WILL CHARGE SHORT TERM OR LONG TERM ???. IN THAT CASE WHAT SHOULD I DO ??.
27 September 2011
Capital gain will arise if due to sale of the machinery, the block of assets ceases to exist. That is, if there is no other in that block then capitl gain will arise.
If this machinery is the only asset in the block, you can purchase another asset. In that case, the block will continue to exist.
Further, disposal of depreciable asset will always attract short term capital gain.
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