12 August 2013
Respected Expert, My queries is related to loss on sale of fixed assets. 1.In which head loss on sale of fixed assets is deductible,which lies in block of assets and on which depreciation has been claimed. whether it is a STCL(short term capital loss)or it is considered as a revenue upto the limit of w.d.v.and deductible under the head PGBP. thanks
13 August 2013
If the asset is a part of block of asset consisting of other assets also, then the sale price will be reduced from the WDV of the whole block and depreciation shall be admissible on the balance amount.
If the sale price exceeds the total WDV, then the excess shall be taxable as Short Term Capital Gain.
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