In a Vehicle Block of Asset @15%, There was only one asset in opening WDV(Say 10000) as on 31.03.2015. During the FY 2015-16 They sold the only asset for more than the WDV (Sold on May2015, Say sale value 25000). There was No assets in that particular Block up to FEB-2016. In FEB-2016 They Purchased a Vehicle(Say 50000). What is the income tax treatment in this regard, Whether any capital gains to be created. what is the depreciation for the FY 2015-16??
23 September 2016
No there would not be any capital gain in the case you described because the block was not nil as on 31.3.XX. Further, the the depreciation would be calculated for half year i.e. 7.5% on the closing amount of block i.e. 10000-25000+50000= 35000.
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