Depriciation!!
This query is : Resolved
01 March 2014
On which base, it can b decided that weather it is allowed or not to get depriciation on Commercial Office?
03 March 2014
If the office is used for the purpose of business or profession, then depreciation is admissible.
03 March 2014
Ok, Thanx!!!
Now what if i sell the commercial property at Rs. 4 lacs, book value of which is 1 lac in last balance sheet after depriciation.
Here short term capital gain tax applicable on the gain occured @ 10%, or this gain is to be added to regular income?
Now what if i sell the commercial property at Rs. 4 lacs, book value of which is 1 lac in last balance sheet after depriciation.
Here short term capital gain tax applicable on the gain occured @ 10%, or this gain is to be added to regular income?
03 March 2014
Since a depreciable asset is sold, short term capital gain will arise u/s 50.
Short term capital gain arising on transfer of property is taxable at normal rates & not at 10%.
It will be taxed at normal tax rate.
Short term capital gain arising on transfer of property is taxable at normal rates & not at 10%.
It will be taxed at normal tax rate.
03 March 2014
Ok, Thanx!!!
Now what if i buy new commercial property worth 4 lac in the same year on which i will take depriciation?
Do i get the set off of the gain on property sold against the purchase of new property?
Now what if i buy new commercial property worth 4 lac in the same year on which i will take depriciation?
Do i get the set off of the gain on property sold against the purchase of new property?
04 March 2014
In that case the block of asset DOES not cease to exist.
Secondly, if the cost of the new asset + Opening WDV is GREATER than the sale price of the old building, NO capital gain will arise.
Eg.
Opening WDV 10,00,000
Purchase 4,00,000
Sale 5,00,000
Balance 9,00,000
No capital gain will arise. You will get depreciation on Rs. 9 lakhs.
Secondly, if the cost of the new asset + Opening WDV is GREATER than the sale price of the old building, NO capital gain will arise.
Eg.
Opening WDV 10,00,000
Purchase 4,00,000
Sale 5,00,000
Balance 9,00,000
No capital gain will arise. You will get depreciation on Rs. 9 lakhs.
04 March 2014
Thank You much Mr. Sidhhartha Bhardwaj!!!
I really appriciate!!!
I really appriciate!!!
04 March 2014
Thank You much Mr. Sidhhartha Bhardwaj!!!
I really appriciate!!!
I really appriciate!!!
04 March 2014
You are welcome. You should use the thanks button to convey your thanks.
Message likes :
1 times
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
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- ITR 4 and Bank transactions
- LIC maturity claim whether taxable
- GST Rate for Catering Services
- EXPORT COMMERCIAL INVOICE HSN CODE
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
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
