I am confused
Can company buy lot of assets to claim high depreciation over say next 5 years and then sell it again at orignal price or more ? for eg Buildings
- If sold at same orignal price after 5years of claiming depreciaition , it will be taxed
- but I am thinking after 5 years even if charged with same tax amount percentage, it would have lost time value of money ( The tax amount would have lost time value of money )
I think - we would have claimed high depreciaiton benefit & still pay less value of taxes in terms of time value
eg
iF Building was 100 cr , we claimed 50 crs depriciation over next 5 year and then sold it for 100 cr , with now tax on gain 50cr @ 30% =15cr
but this value is discounted at 10% = 15/ (1.10)^5 =9.31 cr
and
will revaluation help me in capital gains tax ? Do I pay tax on gain from tax base amount or difference between revaluation amount & sold amount
any notes and content to understand better will be higlhy appericiated .
Thank you