TMI BlogSection 41(2) - Balancing ChargeX X X X Extracts X X X X X X X X Extracts X X X X ..... It is the actual money and it does not include any other thing or benefit which can be converted in terms of money. If the amount calculated under Step II is more than the amount of Step I , then tax treatment of such surplus is as follows: So much of the surplus which is equal to the amount of depreciation already claimed, is taxable as balancing charge u/s 41(2) as business income. The remainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balancing charge but will be treated as capital gain and chargeable to tax u/s 45 under the head Capital Gain . Balance charge is taxable u/s 41(2) in the previous year in which sale price, Insurance, salvage or compensation money becoming due. if the assessee's business is acquired by the government, the amount compensation received is taxable in the year of receipt of such compensation. If a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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