Capital gains for companies

This query is : Resolved

praveen (Querist)
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28 November 2018 Hi Sir,

My Company has purchased car of Rs. 10,00,000 on 01/04/2015 on which depreciation was claimed upto 30/11/2018 and WDV of car is Rs. 6,00,000 on 01/11/2018 company sold such car at Rs. 9,00,000. My Queries are:
1. Is Such asset is a Long Term capital Asset ?
2. If Yes, Is Indexation available on that ?
3. How to Calculate the Capital gain ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 November 2018 all depreciated assets are covered under short term capital gains only. no indexation is available.

refer this for better understanding - https://taxguru.in/income-tax/provisions-relating-capital-gains-case-depreciable-assets.html

praveen

praveen (Querist)
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28 November 2018 So In My case Short Term capital gain is Rs. 3,00,000 (9,00,000-6,00,000) and taxable @ 30% is It ?

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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28 November 2018 that depends on the company's tax rate and whether there is any other asset left in the block. As I mentioned earlier, read the article