capital gain

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pawan (Querist)
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10 June 2011 office building=100000
dep. rate= 5%
office building purchase during p.y. 20002-03
office sell out during the p.y. 2010-11
but depriciation allowed only for first 2 years and not claimed for other years due to losses.
1. compute capital gain
2. what will be the depreciation in this case?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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10 June 2011 In case Depreciation is not computed in recent 3-4 years, it is better to show the Office Building as an Investment Asset from the year onwards so as to treat it as a Long Term Capital Asset.

Otherwise, depreciation has to be calculated and , it will be deemed as if allowed.

The resulting gain in the second case will be STCG.

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