Profit on Sale of Vehicle

This query is : Open

sreenath (Querist)
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28 September 2010 Dear Sir

Our Company is Sold a car As per Companies Act It is Showing A Profit of 167500 we are Charged to P& L Account. Now My Question is The same Profit is Deductible Or Not for in the Computation Of Tax Please Guide Very Urgent

Thanks & Regards

Sreenatha Reddy

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 September 2010 For income tax purpose, taxable income is to be determined by using section 43(6)(c)(B) or section 50 whichever is applicable in the cited case.

Hemu Kapoor

Hemu Kapoor (Expert)
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28 September 2010 Capital Gain would arise.

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sreenath

sreenath (Querist)
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28 September 2010 The Block Contains Other Assets Also. As per Companies act Calculation Of WDV is Less Than the Sale Value So it Will Arise Profit

But In Case of Income Tax Act The WDV is More Than The Sale Value It Will Arise Some 5000 Loss.

My Question Is The Block Contains Some Other assets In The Same Block So The Capital Gain will Not arise. Previously The Profit as per Companies Act Credited To P & L account Now in The Tax Computation Shall I Deduct The Tax From Book Profit Or Not
Thanks & Regards

sreenath Reddy

Hemu Kapoor

Hemu Kapoor (Expert)
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28 September 2010 Your question is not clear ... could u elaborate

Hemu Kapoor

Hemu Kapoor (Expert)
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28 September 2010 Sorry.. i understood what u are trying to convey...

You Should first deduct the profit in Computation & then on the adjusted profits calculate tax ...

this will give you correct tax amount in my opinion..

Regards