TaxTMI 
TaxTMI 
Computation of capital gains in case of Depreciable Assets - (New) Section 74 & 75 (Old) Section 50 & 50A
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....eds then the excess is deemed to be STCG. Sale consideration of assets sold from block - (Transfer expenses + Opening WDV + Cost of additions during the year) Situation 2: Block Ceases to Exist (Section 74(3)) This applies when: • all assets in the block are transferred, • and no asset remains in the block. The resulting gain is deemed to arise from transfer of short-term capital assets. Short Term Capital Gain = Sale Consideration − Cost of Acquisition Cost of acquisition = Opening WDV + Cost of additions during year Sale Consideration /Full value of consideration = Total sale proceeds of all assets transferred. Computation of Capital gain where ent....
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.... the previous year. Then, such excess shall be deemed to be short term capital gains. When Entire Block is Sold Where any block of assets ceased to exist for the reason that all the assets in that block are transferred during the previous year, then the following shall be deemed to be Short-term capital gains: Full Value Consideration (Sales consideration in respect of the transfer of assets) Less: • W.D.V of block of assets at the beginning of the previous year • The actual cost of any asset falling within the block of assets acquired during the previous year. • Expenditure incurred wholly and exclusively in connection with transfer. Short term capital g....
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....¢ No capital loss shall arise merely because the block ceases to exist. Future Sale of Goodwill Governed by Normal Capital Gains Provisions Capital gains arising from transfer of goodwill during AY 2021-22 or later years shall be computed under: • Section 48 • Section 49 • Section 55(2)(a) Cost of acquisition in case of depreciable asset Where the capital asset is an asset in respect of which a deduction on account of depreciation under clause (i) of sub-section (1) of section 32 has been obtained by the assessee in any previous year, the provisions of sections 48 and 49 shall apply subject to the modification that the written down value, as defined in clause (6) of section 43, of the....
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....Assistant Commissioner of Income Tax 1998 (6) TMI 568 - ITAT Mumbai ] • Section 50 applies only where the asset transferred forms part of a block of assets and depreciation has actually been allowed in respect of that asset. The purchase price between land and building and had claimed depreciation only on the building, not on the land. Land is not a depreciable asset (no rate of depreciation is prescribed) and therefore cannot form part of a block of assets for the purposes of Section 50. [ Commissioner of Income Tax-IV Versus M/s. IK. International Pvt. Ltd. 2012 (4) TMI 347 - Delhi High Court ] Against this judgement SLP has been dismissed by supreme Court. [ CIT, New Delhi Versus I.K. International Pvt. Ltd. 2013 (....