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Capital gain

Ruchita Vaghani (46 Points)

20 July 2018

machinery wdv - 300000

CAR WDV -250000

MOBILE PHONE WDV -15000

....MACHINERY SOLD FOR RP.650000

THAN...CAPITAL GAIN ???AMT

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rama krishnan (12244 Points)
Replied 20 July 2018

Capital gains in case of depreciable assets : According to section 50 of Income tax act if an assessee has sold a capital asset forming part of block of assets (building, machinery etc) on which the depreciation has been allowed under Income Tax Act, the income arising from such capital asset is treated as short term capital gain.

Where some assets are left in block of assets: If a part of such capital asset forming part of a block of asset has been sold and after deducting the net consideration received from sale of such asset from the written down value of the block of such asset the written down value comes to NIL then the gain arising shall be treated as short term capital gain and in such case where written down value has become NIL no depreciation shall be available on such block of asset even if some assets are physically left in the block of assets.

When no assets are left in block of assets: If the whole of the capital assets forming part of a block of assets have been sold during a year and the assessee has suffered a loss after deducting the net sale consideration from the written down value of the block of assets then such loss shall be treated as short term capital loss and no depreciation shall be allowed from such block of assets.

in your case stcg will be 3.5 lakhs if boa ceases exist

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