Ltcg on sale of factory shed

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2014 One of my clients intends to Sale a Factory Shed and purchase a residential house/residential plot and carry on construction on it. The asset being sold is Long Term Capital asset.

My query is whether LTCG arising out of sale of Factory Shed Can be treated as purchase of new asset for set of of LTCG.

TKKKKKK

TKKKKKK (Expert)

19 August 2014 Yes, LTCG will be arisen in this case. Your client can claim exemption u/s 54F if he invests in the residential house.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)

20 August 2014 sir,
u have not clarified whether the factory shed is in the name of individual or HUF , becoz deduction u/s 54 F is available to individual and huf only
2. whether the shed is being used for business and depreciation is charged on that shed , if it is so, then it will be short term capital gain , and deduction u/s 54 F will not be available.
pls give the detail in full

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2014 Sir thanks for replying to my query.

The Factory Shed is in the name of Individual.

It is adjacent to the manufacturing unit of the assessee but not being used for business though it is a part of fixed assets in the balance sheet but depreciation has never been claimed on the same.

Thanks

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