Capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 February 2012 After constructing building (took 2 year)company wants to dispose off in the year of completion of construction. Since said building is wip in balance sheet on disposing of building in the year of completion will be there any other treatment or it will same as in case of other block of assets.
I mean to say short term capital gain will be charged (as per section 50).
How can we save such tax.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 February 2012 1.During the period of construction it is WIP and no depreciation is charged do not form part of the block Building.
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2. In a case where no depreciation has been claimed , Section 50 is not applicable.
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3. If you want to go through Section 50 route, once you have to charge depreciation and in the year of sale if you purchase a similar/another asset in the block, Savings in capital gains tax may be made.
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