Sec 50 of income tax act

This query is : Resolved

Niranjan Chaitanya (Querist)
Follow

01 July 2012 4 partners purchased industrial plot and constructed building for their business. Now after 4 years they are selling the same to 3rd party. After selling they earned say 5 lakh( sale value - Book Value).
Will this 5 lakhs be included in Business income or need to calculate indexing and pay long term capital gain on it.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 July 2012 The gain arising on sale of building shall be short term capital gain.

Niranjan Chaitanya

Niranjan Chaitanya (Querist)
Follow

02 July 2012 In case of lang term capital gain, if partnership firm invest proceedings in purchasing any property in that will be they able to claim exemption.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

02 July 2012 1. Firstly, gain arising on transfer of a depreciable asset is ALWAYS short term capital gain.

2. In case of other assets (only land), if the gain is long term, the partnership firm CANNOT avail exemption u/s 54F by investing in a residential house property as the exemption is available only to an individual or HUF.

However, the firm can avail exemption u/s 54EC by investing in specified bonds.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rubal Singhal

Ravi Varshney

Shivchandra Jakhotia

DHANASHRI KARMARKAR

Sneh Choraria

Subscribe Now

Sec 50 of income tax act

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Senior Executive

CA Final

GST CONSULTANCY

Accountant

GST CONSULTANT