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Discussion < Income Tax < If you can solve, u r Genius
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students zone,CA Students
SAURABH


[ Scorecard :80 ]

Profit on Sale of FA in Books of A/cs treatment in I Tax, when no profit as per Income tax rule of Block Asset

We have 5 trucks in company. In current year we sold 3 trucks and purchse 2 new trucks.

We have calculated dep. and profit on sale of truck as per companies act.

We have calculated dep. as per Income Tax also, but there is no Profit in Income tax as block is not get negative after reducing sale value and still there is assets in that block.

 

So, My quiry is how I adjust profit on sale of fixed asset in My Return. So, that no tax will payable on profit on sale of FA.

Pls. give Sec Reference also.

 








JAGDISH DHAMIJA


[ Scorecard :474 ]

Dear Sir,

While making your computaion you should reduce profit on sale of FA as per companies act from your profit becuase its not capital gain in the eye of Income Tax. Capital gain will atttract only when your block will be  nagetive.

 

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