11 October 2019
Sir A private limited company has made a profit of Rs. 150,000 on sale of vehicle. ( Block of assets still has balance since another vehicle was purchased . The WDV at the end of previous year exceeds the sale proceeds.) The Company accounts shows profit on sale of asset -- Rs. 150,000/-. But, for calculation of total income as per Income tax this has to be deducted since there is no short term capital gain as the WDV exceeds the sale consideration . My query is where to show this amount in the computation sheet of Income tax ? ( Whether to show this in " deductible expenditure & Income to be excluded " or in some other head ) Please clarify
12 October 2019
It is to be deduced from income. That is Profit before tax less : Profit on sale of fixed assets . Like Loss on sale of fixed assets added to Profit before tax
12 October 2019
Since there exists the block, you have to reduce the block by sale proceeds of the vehicle and then calculation depreciation for the purpose of income tax.
CAclubindia
