capital gain tax on disposal of depriciable building
This query is : Resolved
03 August 2016
suppose we owned a land and building on which depriciation is claimed till 05-06 nd nw we want to destroy or dispose of the building..aftr diposal sold the plot..how do we calculate capital gain tax on both if depriciation is claimed on building only or if dep is claimed on land nd building both treating it as commercial property?
04 August 2016
Depreciation is allowable on building and not on the land. If any depreciable asset is sold and its entire block is exhausted, capital gains under special provision of section 50 is applicable. Such gain is always 'short term capital gain'. In case of transfer of land it may be a short term or long term capital gain. It shall be calculated separately.
04 August 2016
what if depriciation is claimed till 2005-2006 nd nw in the year 2016-2017 we want to exhaust the building then also will it be short term
04 August 2016
what if depriciation is claimed till 2005-2006 nd nw in the year 2016-2017 we want to exhaust the building then also will it be short term capital gain or long term capital gain?? nd is it capable of calculating
04 August 2016
In case of depreciable asset (building here), it is short term capital gain, if all the assets in the block exhausts. In case of land it may short term or long term.
If you find my reply useful, please score me through 'like user' option.
If you find my reply useful, please score me through 'like user' option.
04 August 2016
Once you used in business and claimed depreciation on building it is a short term capital asset. On its sale, it is liable for short term capital gains tax. The land on which the building constructed is taxable either long term or short term capital gains. This is the law as per IT Act. Hope you go it now.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Grand in aid
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
