Motor car sale

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2013 Dear sir,
We are a partnership concern.As on 31.03.2013 we are having a motor car value for Rs.264007/- after depreciation.We have sold the same and we got a payment of Rs.300000/-
Please explain how to calculate capital gain or loss.
Please reply back at the earleist.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

25 August 2013 For depreciate assets capital gain/loss always Short term gain/loss only as per the Income tax provisions.

And such short term capital gain/loss shall be computed in the below cases only

1) At the time of their in no assets in such block at any time during the year(i.e all assets depreciated under the same block are sold)

(OR)
2) Such block value going to Zero or negative at any time then

In any of the above two cases short term capital gain/loss shall be computed

Computation of gain/loss:

Sale consideration - WDV of the block as on the first day of the current financial years beginning.

So come to your case. Assume you have only one car and it is depreciated @15%p.a and its WDV on 31-3-2013 is Rs.2,64,007/- and didn't have any other assets which are depreciate under the same block. You sold the such car on or after 1-4-2013 for Rs.3,00,000 and you didn't have any other assets which are depreciated under this block as on the date of sale then you shall compute short term capital gain/loss

In your case you have Rs.35993/- short term capital gain because of your sale consideration is more than the WDV.

So in case you have another assets which are depreciated under the same above block and such block WDV is more than Rs.3,00,000/- then you need not to compute short term capital gain/loss at now.

Are you understand it clearly other wise please provide me the following information.

1) WDV of the block as on 31-3-2013
2) Holding of assets on such block as on 31-3-2013
3) Date of sale of CAR
4) If any additions to such block if yes then date of purchase and value of assets.

OM SAI SRI SAI JAI JAI SAI