Short term capital gain

This query is : Resolved

SREE PRAKASH (Querist)
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12 September 2010 Sir
Block of assets ( Vehicles )
Opening balance as on 1.4.09 Rs. 200,000
Sale proceeds of vehicle Rs. 350,000
Purchase of another vehicle Rs. 600,000

The company has made a profit of Rs.150,000 on sale of vehicle.Since the WDV exceeds the sale proceeds there will not be any short term capital gains.Hence in computation of profit for the Company this has to be excluded.Can I show this amount as a deduction from profit in the computation sheet under the head " Income to be excluded" ?

Please clarify the situation.

k c joseph varghese

k c joseph varghese (Expert)
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14 September 2010 No It is not Short Term Capital Gains as the block has not been deleted
The Opening block Will be totalled with new addition of Rs 2 lacs which makes it 8 lacs and from this the sale proceeds shall be reduced which make the balance 4.5 lacs and on this balance 15% depreciation may be claimed ie; 67500/-assumption: new vehicle is used for at least 182 days

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