Sale of Commercial Property

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This discussion clarifies that indexation benefits are available for long-term capital gains on commercial property sold in FY 2019-20, provided depreciation hasn't been claimed under Section 50. Additionally, the client may be eligible for capital gains tax exemptions by reinvesting the sale proceeds into a residential property or specific bonds within the stipulated timeframes, as per Sections 54EC and 54F.

sanjay

sanjay (Querist)

17 January 2020 Sir
My client has sold his commercial property in FY 2019-20. Purchased in 2001-02. It is a long term capital Gain. I would like to take advise whether I can get the benefit of indexation or not.?
Pl advise.
Regards
Sanjay

CA Reshmi Greeting Kumar

CA Reshmi Greeting Kumar (Expert)

17 January 2020 Yes. Your client gets the benefit of indexation. Also, your client can get the exemption from capital gains tax if he is investing that sale proceeds in purchasing a residential property within a period of 1 year.

PARAS CHHAJED

PARAS CHHAJED

(Expert)

17 January 2020 Indexation is available to compute LTCG. If you have claimed depreciation then s. 50 would be applicable. Deduction u/s 54EC, 54F may be availed if investment is made in Bonds / Residential House within stipulated period.

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