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CAPITAL GAIN ON SALE OF FACTORY BUILDING

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praveen jain

1 Points Posted on 25 July 2020

ABC is a partnership firm owned a factory land and building. Now it wants to sell the above factory and wants to purchase a new factory at any other place. Queries are
1. Will it attract capital gain ???
2. If yes then how this capital gain can be saved ???
3. Is there any exemption U/s 54 for the aforesaid capital gain on sale of factory building ???

Replies (2)

Quick Summary

This discussion clarifies the capital gains tax implications for a partnership firm selling its factory building. Capital gains tax will indeed apply. While Section 54 exemptions are not available as they are for individuals/HUFs and apply to residential property, Section 54EC allows for a saving of up to £500,000 by investing in specified bonds.

annu Goyal

1102 Points Posted on 25 July 2020

1.Yes , Capital Gain will be attracted
2. Yes, under sec 54EC by investing in bond issued but max limit is 50lacs
3.No, Firstly Sec 54 deduction is available for individual /Huf
secondly it is provided on sale of residential House property and purchase residential House

soo you are not eligible to take deduction under sec 54