WDV Asset of Firm sold, if it is busi. inc or Capital Gain
This query is : Open
09 May 2009
Sold the very old assets of the firm, it comes a loss as per WDV. Can be adjusted in firm business income.
09 May 2009
It is 'short term capital gain/loss'. For details refer section 50 of the Income tax act,1961 in www.incometaxindia.gov.in
10 May 2009
agree with the expert
11 May 2009
I do not agree with this. There may be loss on the individual assets WDV, however the block of the assets may not have ceased to exit. Please check for Income tax purpose, whether the block in which the assets has been grouped is still existing or it has ceased to exits. If the block exists, there may not be any capital gain / loss. In the case if the block exits, the sale proceeds shall be reduced from the WDV of that block. However on the treatment of loss/ gain if any, I agree with BC that this would be short term as as mentioned by you it seems that the assets are depreciable and depreciation as per Income tax act is has ever been claimed on such assets.
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11 May 2009
Sir,I clearly say,
Block of Asset: Machinery
One Machinery was sold out, So we calculate the cost less depreciation and get WDV. Which would be come under a Gain / loss.
pls, inform the right method of calculation.
Block of Asset: Machinery
One Machinery was sold out, So we calculate the cost less depreciation and get WDV. Which would be come under a Gain / loss.
pls, inform the right method of calculation.
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