DEFERRED TAX - PPE

Accountancy

While computing Deffered tax as per WDV, should I adjust profit on sale of fixed asset or loss on derecognition of assets?.

Azmi RZmi

CA Final

★ 10K+

13-Oct-25 13:36

119

Answers (1)

Ind AS follows balance sheet approach. You simply compare the carrying amount as per books and tax base. Though we sell assets, it does not result in profit or loss for tax purposes since we follow block of asset concept.

CA Suraj Lakhotia

Admin

13-Oct-25 22:22