Capital gain
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
29 October 2011
In case of sale of asset of Power Sector Unit then the resultant gain which is chargeable under the head "Capital Gain" is a Short Term Capital Gain or Long Term CApital Gain? On what factors it will be decided as Section 50A does not specify this.
CA PARAS BAFNA
(Expert)
30 October 2011
Section 50A refers to Section 48 & 49.
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Accordingly, in case of Long Term Capital Asset(held for more than 3 years), Indexation will be allowed.
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Capital Gain :
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It may be noted that to the extent of depreciation claimed the amount realised will be treated as Balancing Charge and will be taxed as Business Income.
Capital Gain arises only in such circumstances where Sales consideration exceeds the Cost of Acquisition (Original Cost and not WDV)
*
*
Accordingly, in case of Long Term Capital Asset(held for more than 3 years), Indexation will be allowed.
*
Capital Gain :
--------------
It may be noted that to the extent of depreciation claimed the amount realised will be treated as Balancing Charge and will be taxed as Business Income.
Capital Gain arises only in such circumstances where Sales consideration exceeds the Cost of Acquisition (Original Cost and not WDV)
*
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