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
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.
Aggarwal Sarawagi and Co
New Delhi
CA
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CMNITY HIRE
New Delhi
Others
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