13 May 2010
land was purchased in year-1 building was constructed in year-2 house was sold on year-4 valuation authority made separate valuation for building and land. how to calculate capital gains? does sale of building lead to short term capital gain as the officer valued it separately? or construction of building is to be taken as cost of improvement?
13 May 2010
In the given situation, land and building will be treated as separate capital assets and will be assessed to capital gains tax according to the holding period of each asset.
CAclubindia
