We are two wheeler company. This year we had sold some Fixed assets on which profit and loss is incurred. Please tell income tax treatment of loss and profit on sale of fixed asset.
10 January 2013
After reducing the depreciation (till the date of sale) from the value of your Fixed Asset (individually) you will get the value as on the date of sale. Now the difference between sale proceeds and the value determined by you is the profit or loss on sale of fixed asset. If you have a profit, credit to your PL a/c and pay tax on the same or if its a loss then you need to debit to PL and your tax liability would reduce with the same amount.
10 January 2013
Pls understand my query- We have profit on sale of FA-Rs. 10000(block exists) Loss on sale of building-Rs. 100000 (block exists) Profit on sale of Furniture-Rs. 2000 (block ceases to exist)
CAclubindia
