Balancing charge on depreciable business assets treats excess realisation as deemed business income when depreciation was earlier allowed.

Taxation of gains on disposal of depreciable business assets operates as a balancing charge where a tangible asset is sold, discarded, demolished, or destroyed for more than its written down value. The excess is treated as deemed business income, with the taxable amount computed by reference to sale consideration, original actual cost, and written down value. The rule applies only if the asset was owned and used for business or profession and depreciation had been claimed and allowed; it remains taxable even if the business no longer exists.

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