CAPITAL GAIN
This query is : Resolved
CA. Shikha
(Querist)
25 November 2008
cOST OF LAND PURCHASED IN 86-87- 2.25 LACS
COST OF CONSTRUCTION OF BLDG IN 99-00- 12.00 LACS(ON WHICH DEP CLAIMED EVERY YEAR )
LAND & BLDG SOLD IN 07-08 - 39.50 LACS
MY QUERY IS WHETHER THERE WUD BE LONG OR SHORT TERM CAPITAL GAIN AND HOW MUCH ????????
COST OF CONSTRUCTION OF BLDG IN 99-00- 12.00 LACS(ON WHICH DEP CLAIMED EVERY YEAR )
LAND & BLDG SOLD IN 07-08 - 39.50 LACS
MY QUERY IS WHETHER THERE WUD BE LONG OR SHORT TERM CAPITAL GAIN AND HOW MUCH ????????
CA Tilak Raj Sharma
(Expert)
25 November 2008
You can follow the judgement given in the case "C.I.T. Vs. Yamuna Syndicate Ltd.".
When a single assets like the building is transferred, consideration has to be approtioned between the depreciable portion i.e. building and non-depreciable i.e. Land for implemanting section 50.
So Long term capital gain on sale of land and short term capital gain on sale of building.
When a single assets like the building is transferred, consideration has to be approtioned between the depreciable portion i.e. building and non-depreciable i.e. Land for implemanting section 50.
So Long term capital gain on sale of land and short term capital gain on sale of building.
25 November 2008
Continuing Tilak, you may also refer the case law CIT Vs Dr.D.L.Ramachandra Rao (1999) 236 ITR 51 (Mad).
CA. Shikha
(Querist)
27 November 2008
Thanx for the reply ..........
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