When a fixed asset is revalued, there are two ways to deal with any depreciation that has accumulated since the last revaluation. The choices are: Force the carrying amount of the asset to equal its newly-revalued amount by proportionally restating the amount of the accumulated depreciation; or.
When an asset is sold the resulting gain or loss is?
The gain or loss on the sale of an asset used in a business is the difference between 1) the amount of cash that a company receives, and 2) the asset’s book value (carrying value) at the time of the sale. If the cash received is greater than the asset’s book value, the difference is recorded as a gain.
Can a property be sold as a stock in trade?
It is to be noted that the above provision are applicable only in case the assessee receives the property as Capital Asset and not as stock in trade. This is because of Explanation (d) to Section 56 (2) (X), which states “property means capital asset of the assessee”.
Can a ancestral property be sold without consent of successors?
In the year 1994 I have register my name as a varsa after my father’s death. Now I have sold that property in the year 2012 and in the year 2014 my uncle claimed 50% on the said property through court. From the year 1994 he will not claimed for the said property.
How is the ownership of a jointly owned property determined?
1. In case of jointly purchased property- In case of jointly purchased property ownership ratio will be determined by the sum contributed by each co-owner to purchase the property. Mere mention of name of one of the joint person in the registry deed does not make him owner for the computation of Income under Income Tax Act. 2.
What happens to property when no will is made?
After the death of a person, his property devolves in two ways – according to his Will i.e. testamentary, or according to the respective laws of succession, when no Will is made. In case an individual dies intestate (no Will is made), the laws of succession come into play. Also check: Buying a home?
