Short Term Capital Loss & business income.u/s 44AD

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This discussion addresses a query about calculating short-term capital loss when an assessee, who opted for presumptive income under Section 44AD, sells factory premises. The core question is whether to use indexed cost for the land and book value (with or without notional depreciation) for the building. The consensus leans towards calculating book value after providing notional depreciation to determine the capital loss.

rmalhotra

rmalhotra (Querist)
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13 March 2020 Sir,
An assessee who has opted presumptive business income assessment u/s 44AD after this scheme was available , and had sold Land and building of his factory premises.. Now while calculating Capital Gain he has done Indexed cost on Land portion and for building portion- can he adopt Book Value ( without Indexation ) without providing Depreciation OR he is required to take book value after providing notional depreciation to arrive at Short Term Capital Loss. on building portion ..Is there any guideline or Restriction or advisory on this point.
Please guide.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2020 Work out book value after providing depreciation.
Providing such depreciation will be considered as actual depreciation and not as notional.

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rmalhotra

rmalhotra (Querist)
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13 March 2020 Sir Greetings & Thank You.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2020 Welcome..................

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