If a 150% depreciation( u/s 35) was claimed n allowed on an asset say of rs 1,00,000 and it was sold for 1,10,000, will capital gains arise? Is d situation same if enhanced dep was claimed for the same asset
4 Replies
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 19 November 2009
if any scientific research assets is come into block then its value will be taken as NIL and if such asset is sold then that amount will be reduced from that block,.
MR. R....halpfull hand is back
(.)
(297 Points)
Replied 19 November 2009
| Originally posted by :Hareesh H Sharma | ||
| " | If a 150% depreciation( u/s 35) was claimed n allowed on an asset say of rs 1,00,000 and it was sold for 1,10,000, will capital gains arise? Is d situation same if enhanced dep was claimed for the same asset | " |
the amount less from research exp..... capital gain not arise
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 19 November 2009
hey the concept about biz gain from sec 41is fine for me..thats what u meant rite manish?? but i asked if thats the only asset in the block and its sold for 1.1 lakhs aftr claiming weighted depreciation will entire 1.1 be taken as sec 41(3) or just 1 lakh being the cost of the asset??
CA Manish K Dhoot
(CA, B. Com, NCFM, CPCM)
(5015 Points)
Replied 19 November 2009
The cost of asset hav already been debited to ur Profit and loss a/c under sec. 35.
u have 2 treatment for scientific research asset.
1. asset bring in to block
then it shall be treated as under :
WDV of block as on 1st day day of previous yr XXX
Add : asset used for scientific research NIL
XXX
Less : scientific research asset sold XXX
if balance is positive then it is WDV elegible for dep.
if balance is negative then it is short term capital gain.
2. If asset is sold without bring in to block then entire amount of sale price will b capital gain.
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