Income tax saving on sale of shop
This query is : Resolved
09 November 2012
Hi,
One shop was purchased in Dec'05. The shop is being sold in FY 12-13. Owner wants to explore different options available to him for tax saving (preferably with reference of various sections). Owner falls below the taxable limit, hence, is not filing returns since few years.
Please can anyone help for the same?
Thanks!
One shop was purchased in Dec'05. The shop is being sold in FY 12-13. Owner wants to explore different options available to him for tax saving (preferably with reference of various sections). Owner falls below the taxable limit, hence, is not filing returns since few years.
Please can anyone help for the same?
Thanks!
10 November 2012
The sale of the shop will come under Section 50B of the income tax act 1961 ,which is slump sale .... in that case ,It will be treated as capital gain . If business is more than 3 years then it will be treated as LTCG and if it is less than 3 years then it will be treated as STCG .....So in that case it will be taxable ....
For LTCG Section 80 series is not applicable ..... So you have to pay tax on LTCG .....
For LTCG Section 80 series is not applicable ..... So you have to pay tax on LTCG .....
12 November 2012
Hi,
Thanks for your reply.
There is no business that is currently happening using that shop. It was rented out. The owner is not involved in any business activities. In that case, can we not use section 54EC or 54F? If no, why?
Regards,
Rajen
Thanks for your reply.
There is no business that is currently happening using that shop. It was rented out. The owner is not involved in any business activities. In that case, can we not use section 54EC or 54F? If no, why?
Regards,
Rajen
10 August 2023
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
- Pass word to open justification report for Q1 for FY 2026-27
- Tax on Deemed Capital Gain
- Section 194JA & JB Income which ITR Form to use
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- 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
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
