Capital gain

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When selling a property that was previously let out, determining the correct capital gains calculation is crucial. This discussion explores whether to treat the property as a depreciable asset under Section 50 or calculate it as a long-term capital gain (LTCG). The consensus leans towards treating it as a depreciable asset, resulting in short-term capital gains, especially if depreciation was claimed. It's important to bifurcate the value between land and building, as land may qualify for LTCG if held for over 24 months.

CA Parul Saxena

CA Parul Saxena (Querist)
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24 March 2021 A property was let out upto Mar 2020. In jan 2021 it was sold....capital gain to be calculated at which perspective as Depreciable Asset or Long term Capital Gain?
As as per Companies act Dep for the period Apr 20 to Jan 21 will be levied in books...so this property to be considered as Depreiable Asset and capital gain to be calculated as Sec 50 or simply calculate Long Term Capitaal Gain?