Depreciation problem

 Ans for 1.you have both the option.U can show seprately as well as individually.

Ans for 2. Depreaciation is not allowed on land.Calculate depreciation on building only i.e on 5 lacs only(if used for business purpose)

capital gain on land is LTCG and on Building it is stcg

 Where land and building are sold and land is long term but the building is a short term capital asset, either because it is newly constructed or it is so treated by virtue of Sec.50, the sale consideration can be split up so as to compute long term capital gains with reference to land separately and to avail in such computation the benefit of indexation. In respect of building, short term capital gain / loss can be computed separately

CIT vs. Citibank