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Concept of block of assets & capital gains

This query is : Resolved 

15 December 2014 If firm having only income of Rent from house property . Can they claim benefits of block on sale of property if they never charged depreciation on assets ??

15 December 2014 The word used is DEPRECIABLE asset.
Whether the depreciation is charged or not is immaterial.

15 December 2014 THANKS SIR FOR YOUR PROMPT REPLY

BUT THEY ALSO DONT HAVE ANY BUSINESS INCOME FOR LAST MANY YEARS

THEY ARE FILLING RETURN OF INCOME WITH INCOME FROM HOUSE PROPERTY FROM THE PROPERTY WHICH THEY ARE SELLING RIGHT NOW.

THEN ALSO CAN THEY SELL THIS PROPERTY & BUY NEW ONE AND CLAIM BENEFITS OF BLOCK AN SAVE CAPITAL GAIN TAX




15 December 2014 is it a partnership business or Sole Proprietory?

15 December 2014 As no depreciation has been claimed earlier treating the house property under one block, they can not claim benefits of block on sale of property.




15 December 2014 IT IS PARTNERSHIP BUSINESS

15 December 2014 By buying new property you can only get capital gain exemption not block of assets benefit.

15 December 2014 but it is partnership firm so this option is also not available




15 December 2014 which option is NOT available for PARTNERSHIP? Capital Gain?

16 December 2014 i am asking about section 54 & 54f

16 December 2014 Also if from this year i.e. from jan-15 they use this property for business purpose & charge depreciation can they claim benefits of block in next year ??

16 December 2014 Property is OWNED by partnership? Right?

Then it must be appearing under FIXED ASSETS under the block of ZERO depreciation. Am i right?




16 December 2014 yes it is partnership firm & appear under fixed assets & because no income from business depreciation has not been charged

16 December 2014 You can use the BLOCK of asset. Care be taken that the new asset be purchase in the SAME year before 31st March. The block of asset should NOT get extinguished..that is the key

16 December 2014 That toh we will buy first & then will sell the property

For safer side we are showing business income for last 3 months of this year & will charged depreciation

and will sell in next year

so can we get benefits of block ??




16 December 2014 01. Buying FIRST is better way of doing it.

02. If the block exists. there is no need to show any BUSINESS income, just for the sake of it.

16 December 2014 ok sir

Thank you so much for your prompt reply



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