02 March 2011
Ours is a Pvt.Ltd.Co. We had purchased a shop which was used for business purposes and was shown as fixed asset and depreciation was duly claimed.
Subsequently there was no business in the co and the shop was shown as Investment in our books of accounts from 1.4.2006 and we stopped claiming depreciation. On sale of this shop should the gains be treated as LTCG or as STCG?
02 March 2011
It will be not be treated as capital gains. The profit will be taxed under the head Income From Business as balancing charge, as the company had claimed the depreciation U/s 32 previously.
CAclubindia
