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regarding short term capital gain

CA Jaydev Modi (PRACTICE ) (49 Points)

12 February 2019

I have openings wdv of 148000 OF CAR exchanged in month Oct for 160000 , in book of account I have entered short term capital gain RS 12000 , because block exist no capital gain will arise as per section 50 of INCOME-TAX ACT , how i can reduced such income from computation so it will not taxable under income tax act .

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177972 Points)
Replied 13 February 2019

Reduce the block of assets by 1.60 L ...

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CA Jaydev Modi (PRACTICE ) (49 Points)
Replied 13 February 2019

BUT WHAT WILL BE TRAT

CA Jaydev Modi (PRACTICE ) (49 Points)
Replied 13 February 2019

one assets sold out of 15% bloick at rs 160000 having wdv 148000 I HAVE BOOKED PROFIT ON SALE OF ASSETS IN BOOKS OF ACCOUNT BECAUSE BLOCK EXISTING SO NO SHORT TERM CAPITAL ARISE, WHILE I ENTERED P&L IN SOFTWARE FOR COMPUTATION OF INCOME SUCH PROFIT INCLUDE SO I HAVE TO REDUCED FROM PROFIT .

MY QUERIES IS IF I REDUCED PROFIT ON SALE OF CAR UNDER WHICH HEAD I WOULD SHOW SO THERE WILL NO ANY TAX IMPLICATION

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177972 Points)
Replied 13 February 2019

When the value of the block reduces to zero, any excess amount received over the sell of asset/s will be STCG only. You cannot adjust the gain under any other income but only against any STCL. if arises in previous year.