15 September 2013
The assesee is engaged in the trading of Cement and is audited very year. He also derives income by hiring of 3 trucks, which he shows u/s 44AE while filing his Income Tax Return. He sold on truck in Sep.2012 for Rs.9,75,000 (Purchased in July 2008 at Rs.12,00,000). What would be the tax treatment of sale of the mentioned truck? Whether LTCG/LTCL would be computed after adjusting Depreciation?
16 September 2013
Since he has sold only one truck out of three block of asset does not vanish. sale consideration shall be deducted from wdv and depreciation shall be calculated on balance amount.
CAclubindia
