28 September 2015
An Assessee have a car in 15% Block of asset with wdv of car -Rs 4,30,000. Also car loan was also existing for Rs 290000. Now he sells his car at Rs 347000 out which the buyer pays the bank loan direct on behalf of the assesee of Rs 290000. and gives balance Rs 57000 by cash to assesee.
The query is as under:
How much reduction will be done in wdv. Rs 347000 or Rs 57000., as per the section 43(6), it is said that WDV will be reduced of the moneys payable in respect of any asset failing within that block, which is sold or discarded or demolished or destroyed during that previous year together with the amount of the scrap value, if any, so, however, that the amount of such reduction does not exceed the written down value as so increased.
As per my interpretation only Rs 57000 will be reduced from WDV.
CAclubindia
