05 March 2010
As such there is no income tax payable on the sale of machinery. You have to pay tax only on the amount of profit you make on selling the machinery. According to Sec. 50 of the Income Tax Act any gain on selling any depreciation asset (like machinery) will be treated as short term capital gain. This gain will be added to the assessee's income and taxed according to the slabs applicable to his income.
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