Block of assets

This query is : Resolved

Abhijit Gupta (Querist)
Follow

10 May 2011 When sale proceeds of a single asset of a block exceeds the entire wdv of the block,what happens to the rest of the assets of that block?????
The excess of proceeds over wdv will be stcg,but what will be the treatment for rest of the assets of that block.

Nayan Das

Nayan Das (Expert)
Follow

11 May 2011 THIS IS STCG INCOME IN DIRECTLY TRATED IN P/L ITEM

Pankaj

Pankaj (Expert)
Follow

12 May 2011 Dear,

You rightly said that excess of proceeds over WDV is STCG.

Now WDV of the block has become zero, so in subsequent period / years, you can't claim any depreciation and whenever you are selling any of the remaining asset belonging to that block, the full sale proceeds will be treated as STCG.
You raised a good question.

Upgrade to CAclubindia Pro. Subscribe Now!

Abhijit Gupta

Abhijit Gupta (Querist)
Follow

12 May 2011 thank you sir for your prompt reply