Capital gain tax

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This query is : Resolved

CMA Omkar.TIlve (Querist)

07 November 2012 a man purchased a plot of land in 1990 and started constructing house in 2005 and completed the construction of house in 2006. He sells the house in the year 2012.

Questions

1. will the land and the house be treated differently for the purpose long term capital

2.what if the house was constructed on the same land (purchased in 1990) in the year 2012 and sold in 2012 will the house be treated as Short term capital gain and land as long term capital gain

Thanks in Advance

Amol S Joglekar

Amol S Joglekar (Expert)

07 November 2012 The gain is calculated with respect to "capital Asset". In your case you have to decide as to what is your capital asset. Only LAND or LAND on as is where is basis or LAND with Building or building only or......

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)

07 November 2012 1.Yes, Capital gain on land and building should be calculated separately.

2.Building treated as separate capital asset , hence period of holding is to be calculated only for building, if constructed and sold in the same year it should be short term capital gain only.

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