Vechile sale -depreciation and capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 May 2013 Dear all,

in fy 12-13 pvt limited compnay had sold a car for 25 lacs which has purcased under loan during 11-12 for 6358924 which has WDV as on 1 Apr 12 is Rs 5882004.

Now how much should i record as loss on sale, depreciation and capital gain would be short term or long term/

Regards

Pankaj Gupta

Pankaj Gupta (Expert)
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20 May 2013 Short term capital loss will arise only if the whole of the block is reduced to nil value after the sale.

Assuming that this was the only asset in the block, Short term capital loss will arise and the wdv will be taken at nil value then.

I may help you more appropriately if you specify the wdv of the block as on 1 Apr 12.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2013 Thanks for your mail.

Please find the following details and advice..

Car has been grouped under the motor car whose block value is Rs 9807412 as on 1 Apr,12 .. out of this sold as on 1 Jan'13 was Rs 58,82,005(WDV as on 1 Apr'12) --- Depreciation@15% PA)

Just to inform car was taken under loan( let me if it would effect any for capital gain ,depreciation)

Now please let me know how much depreciation, Capital gain( is it STCG or LTCG) should I consider for 12-13.

Regads

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Pankaj Gupta

Pankaj Gupta (Expert)
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29 May 2013 I am little bit confused. Not able to get your question clearly.
Pls fill the following details correctly..

WDV as on 31st March 11 _________
WDV as on 31st March 12 _________
Purchase date of new car _________
Purchase value of new car_________
Sale date of new car _________
Sale value of new car. _________

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 July 2013 I agree with the experts. As per companies act it is to be charged on the number of days used and as per Income Tax Act no depreciation is chargeable in the year of sale and you have to go by block of the assets.