18 September 2010
If I sold business asset for Rs.1,00,000/- whose WDV is say Rs.2,000/-, original cost of which was say Rs.50,000/- . Further, block of asset consist of only one asset which was sold.
As per Sec 41(2) amount chargeable to tax under business income is Rs.48,000/- and under sec 50(2) amount chargeable to tax under capital gain is Rs.98,000/-. In such a situation Rs.48,000/- is offered to tax twice?
Because Sec 50(2) specifies that the cost of acquisition would be the WDV of asset and not the original cost of asset.
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