02 May 2014
If we sell a business asset then we calculate capital gains. However when in the business a block of asset ceases to exist and if sale consideration is more then we again charge short term capital gain so there can be charge of capital gains twice can someone please clarify the same?
02 May 2014
I think you are confusing Book Profits & Total Income as per Income Tax. In books, short term capital gain on sale of fixed assets will appear & added to profits. While computing Total Income, Capital gain will be subtracted from this business income & will be taxable under the head capital gains. No point of double taxation in it.
02 May 2014
Sir I am confused as to when we sell the asset we charge capital gains and in calculation of depreciation as per Income tax Act if the block of asset ceases to exist and if sale consideration is more than the value of block of asset then again there is short term capital gain charged
CAclubindia
