22 August 2011
M/s XYZ Pvt. Ltd. has earned a Profit on sale of a Machinery (purchased in 2007 and sold in 2010). What is the treatment of the same in Income Tax?
23 August 2011
For the purpose of Income Tax, You have to first see that whether there are other Machines exist in the same block. . You can deduct the sales consideration from the WDV of the Block after considering Additions in the block. . In case there is no other asset in the block , the difference will be treated as STCL or STCG. Section 50. . The treatment given in above by the expert Shri Ravi, ca be adopted in the Books.
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