Capital gains

This query is : Resolved

devang babaria (Querist)
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01 July 2013 dear experts
i received insurance claim of Rs.525000/- for a car costing Rs. 500000/-. WDV in my books shows Rs.300000/-.i do not follow block of asset method for claiming depreciation. how to tax the above transactions.

thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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01 July 2013 There is no option under the Income-Tax act in following the block of asset method. It is compulsorily to be followed even if you had a single car as the item of the block.
.
Rs 225000/- will be treated as Short term capital gain.
(525000-300000).
.

devang babaria

devang babaria (Querist)
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01 July 2013 but Rs. 200000/-will be shown as income on p&l cr. side for the depreciation charged till this years??

(500000-300000)

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