Can we sale Building & Land separately where we have

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Dear All,

one of the client had purchased  in the process of take over the Land & Factory Building apartent thereto disclosed as Work in Progress in the Balance sheet 

We have paid the consideration for aquisition of shares.

 

Now we want to sale the building & land separately ,

What shall be the consequences w.r.t Income Tax? Shall we have indexation on aggregate amount or shall we have to indexed only building & Not the Lnad

Replies (1)

IN CASE OF TAKE OVER THE ENTIRE CONSIDERATION (FOR SHARES) HAS TO BE DISTRIBUTED AMONG ALL THE ASSETS BY A VALUER..AND IN THE BOOKS THE ASSETS HAS TO BE RECOGNISED ON THAT VALUE...

IN SUCH CASE THE VALUATION DONE BY THE VALUER WILL SERVE YOUR PURPOSE.

LAND BEING A NON DEPRECIABLE ASSET CAN BE INDEXED ONLY..IF DEPRECIATION U/S 32 HAS BEE CLAIMED IN THE PAST ON THE BUILDING THEN THE BENEFIT OF INDEXATION WILL NOT BE ALLOWED.

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