I HAVE A COMMERCIAL PROPERTY WHICH I WANT TO SELL AND BUY A NEW ONE , WHILE DOING SO I ALSO WANT TO WRITE OF LIABILITES..
THE ASSET BEING BOUGHT HAS A PURCHASE PRICE LESS THAN THE SELLING PRICE OF OLD ASSET,
ON WHAT PART THE CAPITAL GAIN BE APPLICABLE..
Gain or loss could be measured in respect to the company assets in accordance to the rate and rotio.
Term Papers
you can claim deductions of capital gain u/s 54 F in case you buy a residential house from the sale proceeds of commercial property....other than this you cant get any exemption...nd capital gain will be taxable.....
you cant set off any liabilty on it....
Bank loans cannot be added to cost of acquisition, if that is what you mean. In other words, your CG will be the sale price minus the purchase price.
If you had claimed depreciation on the building, then no indexation is allowed and STCG will be as per Section 50. For the land portion of it, provided a seperate value was available in the first place, indexation can be claimed. No other exemptions are available except under 54F as rightly pointed out earlier.
To put it plainly:
1. No roll over benefit for purchase of a new asset except under 54F or 54G
2. No setting off of loan liabiities allowed whether the CG is worked out under 45 (for land) or 50 (for building).
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