other income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2010 profit on sale of machinery
like company - pvt ltd company purchased some machinery and sale during the year & earned profit.

wat the treatment under IT act,
and weather deferred taxliablity arise.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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04 September 2010 not mentioned whether block of assets ceased to exist or not.

In books u will have to recognise profit on sale.

Whereas in income tax
- if block ceased to exist then gains to be taxable as STCG u/s 50 and no Deferred tax to be made.

- if block does not cease to exist then sale credited to the block no profit to recognise and Deferred tax to be made.

Querist : Anonymous

Querist : Anonymous (Querist)

09 September 2010 The Asset Not Put to Use, Just They Purchased & Sale in Same Yr For Gain.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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09 September 2010 I think it will be STCG.