Capital gain tax on sale of commercial property

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NUPUR DUEBY

SELF EMPLOYED

21 Points Posted on 26 March 2018

Hi,

I have a a query regarding the long term capital gain tax on sale of a COMMERCIAL property e.g. A Shop or Showroom.

I have read many articles and expert advices on the sale of house property but i am unable to find anything related to commercial property. I would be great if some of the experts can shed light on how is the LCGT calculated and are there any exemption one can avail.

I also wanted to know if one sells a commercial property e.g. a Shop and immediately buys another shop of approx the same value then is liable to pay the capital gain tax ?

Replies (7)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 26 March 2018

" I also wanted to know if one sells a commercial property e.g. a Shop and immediately buys another shop of approx the same value then is liable to pay the capital gain tax?"

As exemption is not available for any investment in shop (but only for residential property), tax liability remains intact.

RAMAKRISHNAN R

INCOME TAX OFFICER

911 Points Posted on 26 March 2018

for fixed assets used in business, the capital gain determined would be of stcg. recently there's a case law wherein it's ruled that business asset held for more than 36 months, indexation should be given and the CG should be computed accordingly

Nihar Enterprises

Partner

24 Points Posted on 28 March 2018

Hello, can you please share the case law in which it has been ruled that for the business asset held for more than 36 months, the indexation should be given

Nihar Enterprises

Partner

24 Points Posted on 28 March 2018

One more thing, I also wanted to know how to compute capital gain of depreciable business asset, Can someone please help in this regard?

Yogesh M

22 Points Posted on 26 June 2018

Hi,
I have a long term commercial property which as per the current indexation is 9.5 lacs. The sale consideration of this property is 15 lacs. Subsequently, I am also buying another commercial property from that sale proceeds at 14.5 lacs. Wanted to know if any tax is payable if I am reinvesting the entire proceeds into commercial property?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 26 June 2018

Yes, capital gains of 15.00 ---- 9.50 L ie. Rs. 5.50 lakhs is taxable..... as investment in any commercial property do not avail any exemption in LTCG.

Prabhakar Thakur

28 Points Posted on 11 May 2019

Originally posted by : Yogesh M
	Hi,I have a long term commercial property which as per the current indexation is 9.5 lacs. The sale consideration of this property is 15 lacs. Subsequently, I am also buying another commercial property from that sale proceeds at 14.5 lacs. Wanted to know if any tax is payable if I am reinvesting the entire proceeds into commercial property?