depreciation-block of assets

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karan (Querist)
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25 March 2010 What if I have a block of assets having plants A and B value of which is 2 lacs.I buy plant C on 1st Dec for 2.4 lacs.And sell plant A and B on 2nd Dec for 2.2 lacs.Would there be any short term capital gain or/and would be a 50% depreciation on plant C?Thank you.

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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25 March 2010 as per my opinion

Block - 2+2.4-2.2=0.2

no short term capital gain because of your block exist and normal 7.5%(half of 15%)dep. chargeable on plant c.

karan

karan (Querist)
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25 March 2010 Thanks.You meant to say
2+2.4-2.2=2.2
What if
A & B->2lacs
C bought on 1st Dec for->2.2 lacs
A & B sold for 10 lacs on 2nd Dec.

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CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)
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26 March 2010 yes,

then block exist at 0 value,

2+2.2-10=5.8

short term capital gain of Rs. 5.8lacs,
for more details refer sec. 50 of it act

karan

karan (Querist)
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31 March 2010 thanks..