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Capital gains

251 views 3 replies

chamarthi venkatesh

Student CA Articleship

848 Points Joined June 2015

I have a doubt in Capital gains (Section 50 :Computation of CG in case of Depreciable assets) about the follwing scenario

Example :-

Assessee have 7 assets in one block of assets, WDV - 10,00,000.

He sold 5 assets for 12,00,000

Here Block becomes Zero and STCG amounts to 2,00,000.

But, what about the remaining to assets ?

How to treat them in the succeeding PYs?

Replies (3)

Balaji Ramalingam

Student - CA Final

285 Points Joined October 2015

There won't be any tax implications regarding those assets left over. In the subsequent years even if new assets are added to that block, those 2 assets won't be considered because only closing WDV can become the opening WDV of the next year for calculation of depreciation.

karan

PUNE

78 Points Joined September 2013

The remaining asset will have no tax implications. However their sell will also attract tax u/s 50.
For accounting purpose it will be reflected as per company accounts(if assessee is company)