08 December 2010
One of our client have property of Rs 700000/- WDV under block concept, after that the business of discontinue for 10 year. in current financial year 20010-11 he sale assets for Rs 2crors. Whether he liable to pay capital gain short term or long term?????
As your client has discontinued his business so that property has cease to be business asset. As it was always a capital asset it will attract capital gain tax.
As it is now it is not a depreciable asset so it will cover under sec 50. In my opinion it will be taxed as LTCG (as held for more than 3Yrs).
CAclubindia
