Need clarification for this can any one help me out Opening balance of a Fixed asset is 22,00,000 and sold during the year is 12,00,000 will this 12lack attracts capital gain ? in block of asset concept ? thanks
4 Replies
kckinn
(CA)
(759 Points)
Replied 22 December 2010
I don't think capital gains is attracted in this case.
Capital gains would have been attracted had the block of assets become empty.
Don't remember the provisions very clearly though 
Vivek Raju P
(Manager)
(614 Points)
Replied 01 January 2011
Capital gains will arise only in a situation where the consideration received is greater than the WDV of the block to which it pertains. Even if there is one rupee closing WDV in the block of assets cap gains will not be applicable.
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