naveen sharma
(article)
(454 Points)
Replied 08 June 2010
| Originally posted by : CA Shivang | ||
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Lets make it simple... Is selling of asset is your regular business? Answer is no. You carry certain business of trading, material, construction, consulting etc. anything.but u dont do purchase and sale regularly. So it is not considered as in regular business. Also we have separate head which considers the profit or loss of assets. so we deduct that amount and take it to head of capital gain.... |
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| Originally posted by : Akhil Gupta | ||
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If sale/purchase of assets is not not your regular business then there is separate treatment given under Income Tax Act i.e., DEPRECIATION. If you sale/purchase any assets then it will be deducted/added in the respective block of assets. If you sale any assets and Block of assets becomes Nil then there will be a short term capital gain. If all the assets of the blosk are sold out there there will be short term capital gain/loss as per the calculation. Section 32 of the Income Tax Act govern this treatment. |
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agree with akhil gupta . here the section 32 of the income tax act will be applied
jaskaran singh
(CA Final)
(72 Points)
Replied 08 June 2010
Dear Rakesh its simply because Income ACT, says this to take any profits or gains from sale of capital asset u/s-45 not under u/s-28. rest agree with CA Shivang sir.i suggest u to just go with law as it says, at PCC level .though v shud clear doubts .but try not contradict with law....best of luck..
Shankar Shridhar
(Student-CA Final(New) Articled Assistant)
(115 Points)
Replied 08 June 2010
Basically wen u deduct the sale price from the opening WDV it automatically gets adjusted wen u calculate depreciation on the reduced or the higher figure
understood?
so indirectly it is getting considered into account although not directly!
CAclubindia
