sec 50

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Mayank (Querist)
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23 November 2010 here d some query about sec 50 of i tax act.

If block of assets exit on d last day of prevous year is only because of upward revaluation of assets than wat will be the effect of such revaluation.

e.g. wdv of assets on 01.04.09 is rs 100000 containing two plant and machinery on 30.09.10 one plant sold for rs.150000 and no other addition has been made during the year for remaining one palnt co. has made revaluation of rs.60000 hence wdv at the end of the year is rs.9250/-(10000-15%/2) only because of revaluation now tax liability under capital gain can be arised or not?

CA. BHAVIK DILIPBHAI MEHTA

CA. BHAVIK DILIPBHAI MEHTA (Expert)
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25 November 2010 As per section 50, if the full value of consideration exceeds the cost of acquisition of depreciable assets then there will be capital gains which will always be short term capital gain.

For computing capital gains, the following are deducted:
1)Cost of acquisition & improvement
2)Expenses on transfer.

Hence in your case please calculate short term capital gain without taking the effect of revaluation as it neither of the above two.