Depriciation!!
This query is : Resolved
JaydeepVora
(Querist)
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.
JaydeepVora
(Querist)
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.
JaydeepVora
(Querist)
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.
JaydeepVora
(Querist)
04 March 2014
Thank You much Mr. Sidhhartha Bhardwaj!!!
I really appriciate!!!
I really appriciate!!!
JaydeepVora
(Querist)
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.
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