sale of motor car
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 August 2010
A FIRM SOLD MOTOR CAR AMOUNTING RS.350000/ON 4-8-2010 WHOSE WDV AS ON 1-4-2010 RS.275000/-. A FIRM HAS BLOCK OF ASSETS OF MOTOR CAR, NOW RS.75000/ PROFIT IS TREATED AS BUSSINESS INCOME OR CAPITAL GAIN. PLEASE EXPLAIN ENTRIES IN BOOKS & DEPRECIATION CALCULATION.
10 August 2010
Gain on sale of a depreciable asset will be short term capital gains taxable u/s 50(1) and liable to be taxed as such on normal slab rates.
Since the block in zero no depreciation for the year allowable.
Since the block in zero no depreciation for the year allowable.
11 August 2010
In the books of accounts, you have to show Rs. 75,000 as Profit on sale of asset.
For Income-tax purpose :
a) Profit on sale of asset Rs. 75,000 shall be excluded from the business income.
b) Rs. 3.5 lakh(sale value) shall be reduced from the block of asset of motor car as on 01-04-2010. Depreciation will be calculated on the balance if any, in the block after such reduction.
c) If the sale proceeds exceeds the opening WDV + additions if any during the year, the difference will be Short term capital gains.
For Income-tax purpose :
a) Profit on sale of asset Rs. 75,000 shall be excluded from the business income.
b) Rs. 3.5 lakh(sale value) shall be reduced from the block of asset of motor car as on 01-04-2010. Depreciation will be calculated on the balance if any, in the block after such reduction.
c) If the sale proceeds exceeds the opening WDV + additions if any during the year, the difference will be Short term capital gains.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Inventory of finished goods
- Tds on building rent monthly
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
