Tax treatment of building demolished

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This query is : Resolved

ROHIT GARG (Querist)

06 September 2014 what will be tax and accounting treatment of building demolished during the year and no new building is constructed during year??
and will the sale of the scrap from such destruction will be treated as Consideration for computing capital gain??

gbalakrishnan

gbalakrishnan (Expert)

08 September 2014 may be on scrap value only is to be treated as a kind of capital gain may be under Short term or lpng term if more than three year old!

gbalakrishnan

gbalakrishnan (Expert)

08 September 2014 may be on scrap value only is to be treated as a kind of capital gain may be under Short term or lpng term if more than three year old!
Here question is demolished structure not sold building demolished structure. in fact here there is no sale and could mean no capital gains unless scrap of demolished structure is sold!

ROHIT GARG

ROHIT GARG (Querist)

18 September 2014 thanks for reply
But there is no transfer of building as building is not sold,its scrap that is sold

so wouldn't it be disallowed ??

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