Query regarding as-22

This query is : Resolved

Manoj Jindal (Querist)
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07 August 2013 hellooo frends,

i want to know that what is the treatment of disposal of full block of fixed assets(in short term capital gain) by a private limited company.

is any DTA/DTL will created bcos of

(1)diff. in profit as per co act or income tax.

and

(2) depreciation diff. bcos as per co act depreciation charge as per day and in income tax dep. not charge bcos full block sale on profit.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 August 2013 DTA/DTL will NOT be created on account of difference in profit & difference in depreciation.
This is because both are PERMANENT difference.
they are permanent difference because the block has been disposed off and next year there will be no depreciation and no profit/loss.

Manoj Jindal

Manoj Jindal (Querist)
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07 August 2013 thanx siddhartha

but can u explain how to show in income tax diff between of accounting income and taxable income due to these differences.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 August 2013 Where in income tax do you want to show difference in income?
No such disclosure is to be made.
Taxable income is to be computed as per normal provisions.

Manoj Jindal

Manoj Jindal (Querist)
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07 August 2013 i mean when we calculated our profit in book then charge dep. as no of days assets used by us.

but in income tax depreciation not charge bcos of full block of assets cease to exist.

and same in case of profit bcos op. WDV is diff. in IT and co. book due to DTA/DTL created in past year in books.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 August 2013 Taxable income will be calculated as under:

Income as per books
Add: Depreciation disallowed
Add/Less: Gain/Loss on sale of assets
Add: Capital gain on sale of assets

Manoj Jindal

Manoj Jindal (Querist)
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07 August 2013 ok...

thnx siddhartha

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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08 August 2013 You are welcome. You should use the thanks button to convey your thanks.

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