Pavithra (Student CA Final ) (69 Points)
19 November 2015Hi all,
On sale of fixed assets, there is a loss as per Companies Act. And I have continued the asset in the block as per IT Act. My query is whether we can claim the loss on sale of asset as per Companies Act while calculating business income as per IT Act i.e., under PGBP
Thanks in advance
Karthik.V.Kulkarni
(Chartered Accountant)
(594 Points)
Replied 19 November 2015
Anitha
(Articles)
(121 Points)
Replied 20 November 2015
Hi pavithra,
Income Tax Act prescribes block method, Sale price is deducted from WDV.
In which case, even if there is loss, if block exist we'l continue to provide depreciation for next years.
I think we cant avail both depreciation and allowability of loss on asset at same time.
Anitha
(Articles)
(121 Points)
Replied 20 November 2015
Hi pavithra,
Income Tax Act prescribes block method, Sale price is deducted from WDV.
In which case, even if there is loss, if block exist we'l continue to provide depreciation for next years.
I think we cant avail both depreciation and allowability of loss on asset at same time.
Anitha
(Articles)
(121 Points)
Replied 20 November 2015
Capital loss can be claimed only if there is no asset in block
Pavithra
(Student CA Final )
(69 Points)
Replied 20 November 2015
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