Whether it is long-term or short-term capital gain

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This query is : Resolved

SURESH (Querist)

26 September 2012 Dear sir,
A Pvt limited company sale of land and building Rs.12,00,000 ,cost of acquisition of land Rs.2,00,000 in the year 1993-94 and the company constructed building and capitalized in books Rs.5,00,000 ,depreciation claim on such building, WDV value of building as on date of sale Rs.3,00,000.
company followed
total sale consideration -land value -WDV value of building (i.e; 12,00,000 -2,00,000-3,00,000=7,00,000)
Rs. 7,00,000 is treated as Short-term Capital gain .
whether it is correct or not
if it is not correct Plz tell me
how to calculate the Long-term Capital gain & Short-term capital gain

CA Navin Jain

CA Navin Jain (Expert)

26 September 2012 you can calulate capital gain on land and bulding separately.

For land capital gain wil come long trem after indexation benefit.

for building capital gain will come short trem capital gain since company claiming depreciation.

for this you make the agrrement for the value of sale consideration of land and building.

SURESH

SURESH (Querist)

26 September 2012 the sale consideration is in divisible for calculating capital gain
agrrement for value of sale consideration means

SURESH

SURESH (Querist)

26 September 2012 the above situation company got short-term capital gain and long-term capita loss ,can be set off against STCG.

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