Excess realise on sale of land or
STCG on sale of land
..r same thing or diff ..??
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Replies (13)
Yes depends upon the period of holding if it is held for more than 24 months then both are different else both are same
I know that ..if more than 24 months it would be long term ...
but I wanted to know is there any diff. in this because amount is differs And both are not treated in same way ?
but I wanted to know is there any diff. in this because amount is differs And both are not treated in same way ?
Yes if it is long term indexation would amount and amount would differ also exemption in capital gains depend on whether the asset is long term or short term
m not asking this.
Hmm ok.... can you provide few more details so that I can understand query
look ..m doing taxation of companies n while calculating book profits under MAT provisions both this given in question i.e
excess realized on sale of land held as investment rs. 30 lac
Short term capital gain on sale of land mentioned above rs. 40 lac
treatment ..????
excess realized on sale of land held as investment rs. 30 lac
Short term capital gain on sale of land mentioned above rs. 40 lac
treatment ..????
oh okay for your query then ya treatment is Same under MAT u/s 115JB
tell me treatment ??
No adjustment is to be done to book profits assuming excess realized is already credited to profit and loss....for income tax computation under normal provisions amount of 30 lakhs is to be deducted and 40 lakhs is to be added
| Originally posted by : Jaisika Kukreja | ||
 |
look ..m doing taxation of companies n while calculating book profits under MAT provisions both this given in question i.e excess realized on sale of land held as investment rs. 30 lacShort term capital gain on sale of land mentioned above rs. 40 lac treatment ..???? |  |
Realisation and gain are 2 disparate things but maybe the same in some cases.
Take a case of applicability of S.50C, in that case, STCG would be more than the excess realised. Other case is where the case is referred to the Valuation officer.
Further, the gain has to be computed by following the provisions of the Act. Whereas for excess realisation, may only mean an excess of realisation over the cost. This cost may or may not include stamp duty for eg if S.80C is opted and the stamp duty charges are not capitalised.
Other difference would be of the cost of transfer.
Where a business asset is sold and there is a loss, then that is treated as per PGBP provisions i.e if FVC>WDV then it would be a PGBP income and in that case, cost of transfer would go into P&L but if there is a capital gain, eg FVC> original cost then gain has to be computed as per S.48, wherein cost of transfer is necessarily to be deducted from FVC.
Definitely, there could be more scenarios. S.43(1) can also impact the cost. Since this case is concerned with Cap gains, therefore I do not want to go much into PGBP chapter.
A difference would also arise if S.50D is applicable because there we are considering the Fair market value and not the actual value.
A difference would also arise if S.49(4) is applicable because there we are considering the value taken u/s 56(2)(vii)/(viia)(x)
Similarly, S.49(5), as there also we have the concept of FMV
49(6) even 49(1).... I think I should mention entire S.49 and S.48.
Therefore, there could be differences.
The query and explanation offered are both different Z
| Originally posted by : Jaisika Kukreja | ||
|
Excess realise on sale of land or STCG on sale of land ..r same thing or diff ..?? | |
The answer is in respect to this post.
while computing book profit u/s 115JB u need to ignore STCG i.e 40lac....30 lac taken into account.
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