Section 50 of ITA, 1961 : Section 50: Special Provision For Computation Of Capital Gains In Case Of Depreciable Assets

Explanation using Example

Let's say Mr. Sharma owns a manufacturing business and has a block of machinery assets on which he has claimed depreciation over the years. In the financial year 2022-23, he decides to sell one of the machines for a substantial amount. To calculate the capital gains on this sale, he must consider Section 50 of the Income-tax Act, 1961.

According to Section 50, the calculation of capital gains will be different from the usual method because the machine is part of a block of assets and depreciation has been claimed on it. Here's how ...

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