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)
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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)
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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

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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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