11 September 2010
Sir A private limited company has made a profit of Rs. 150,000 on sale of vehicle. ( Block of assets still has balance since another vehicle was purchased . The WDV at the end of previous year exceeds the sale proceeds.) The Company accounts shows profit on sale of asset -- Rs. 150,000/-. But, for calculation of total income as per Income tax this has to be deducted since there is no short term capital gain as the WDV exceeds the sale consideration . My query is where to show this amount in the computation sheet of Income tax ? ( Whether to show this in " deductible expenditure & Income to be excluded " or in some other head ) Please clarify .
11 September 2010
Dear Sir, Please refer sec 32 and sec 50 for this purpose. However, a brief is given below:
I assume that even total WDV of all vehicle of block of asset is less then Sale consideration and Rs. 1,50,000 you receive in excess of that WDV.
Therefore, According to Section 50 This amount will be Short Term Capital Gain and to be taxed as per STCG. From PGBP income this will be excluded under the head of Disallowed Incomes.
CAclubindia
