Dear Members,
I would like to have your esteemed views on capital gains taxation query being faced:
A businessman has three business assets in the form of buildings, an office at Delhi, a godown building at Bangalore and a office at Bangalore. All these are in one block. Due to recession, now office at Delhi and godown building are not being used and depreciation is being claimed only on office at Bangalore. During FY 2005-06,he sells the godown buiding. Will he be chargeable to any Capital gains or only the transfer cost shall be deducted from the block? How the depreciation on office at Bangalore shall be charged?
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Capital gains on sale of godown building
Replies (3)
No Capital gains shall be chargeable to the Assessee. The transfer cost shall be deducted from the block and only the remaining value shall be subject to depreciation
If the sale value of the building is more than the value of the block then the transfer will attract short term capital gains under sec 50 of the Income tax Act
no capital gains will arise since my block is still there
No Capital gain will arise .Only after setting within the block if there arise a profit will be subject to short term
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