Capital gain on sale of non depreciable asset

This query is : Resolved

kunal (Querist)
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28 December 2013 in company's books there was a land in fixed assets
opening value Rs. 50 lacs (purchased in f/y 2006-07)

Sale during the f/y 2011-12 = 1 crore

how to treat this transaction in company's books?

as land is non depreciable asset section 50is not applicable..
can we indexation benefit on the sale of non depreciable asset?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 yes. indexation shall be available.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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29 December 2013 As its a long term fixed asset and it will be taxed as per long term capital gain..

Sale Consideration - 1 crore

less: cost of acquisition
CII of transfer date/ CII of acquisition date X COST

785/519 X 5000000 - 7562620

LTCG - 2437380

Exemption can be claimed U/S 54F, 54EC...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 Aryan Bhai,

are you sure about availability of exemption under 54F in this case??

CA Pallav Singhania

CA Pallav Singhania (Expert)
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29 December 2013 Ohh.. Thanks for the correction Nikhil Bhai..
54 EC will be allowable exemption.. as 54F is for HUF and Individuals...

Nikhil Kaushik

Nikhil Kaushik (Expert)
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29 December 2013 welcome Aryan Bhai...waise kahan the itne din??

CA Pallav Singhania

CA Pallav Singhania (Expert)
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29 December 2013 Bus... Varanasi gaya hua tha...
Ab lauta hoon...