12 September 2011
One of my client in his Proprietorship Business in FY 2010-11. Buniness Turnover Rs. 4 Core. and Net Profit Rs. 20 Lacs. Op.Bal for motor car as on 1.4.2010 for Rs.444489/- The motor car sale for Rs. 180000/- on date 7.2.2011 Depreciation & Loss of car sale how can compute it?
12 September 2011
As the car does not exist as on 31st march no depreciation will be allowed for the f.y. 2010-11. Also the loss will be short term capital loss. capital loss will be opening w.d.v-sales price. This is as per Income Tax rules(Block of Assets)
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