15 June 2009
My company has sold some its fixed assets during the F Y 2008 - 09. On certain assets there is a profit and on certain assets there is a loss. The sale has happened on 30.09.2008. How is to be reflected in the I.Tax computation ?
15 June 2009
The Block of Assets method is always used in case of Fixed Assets. In this case all fixed assets of same nature and same prescribed rate of depreciation are put together and any addition and deletion is given effect from this block. Any profit or loss from sale of asset should be routed through Profit and Loss Account. Accordingly the Net Income will be calculated.
15 June 2009
If the block of assets as mentioned above is still positive and there are some assets left there will not be any capital gains for the purpose of Income Tax.
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