How to tax this? A typical case.

Status - Individual

Transfer- Valid

Cost will be WDV on 31-3-2007

Short term

NO BENEFITS TO AVAIL AS THE TRANSFER IS SHORT TERM.

For investment purpose you have to hold it atleast for 3 years .

ANkit,

Regards,

R S hriram

wdv as on 31.3.07 will be taken as cost

it is a LTCG

so exemption can be availed under sec 54 by investing in other house

In my opinion.. It is a depreciable Capital Asset till 2007. Then he started letting out the building.. So in my opinion in 2007 it should be treated as a Short term CApital Gain while it is transferred from Depreciable Asset to a Non Depreciable one.. Sale value will be the value at which it is transferred.. 

Secondly again when this rented building is sold, then Sale consideration will be the Actual amount received less Value at which the asset was converted from a Depreciable asset to a NON DEPRECIABLE ONE.. 

in sHORT WHEN YOU CLUB BOTH .. STCG WILL COME ON SALE VALUE LESS WDV.. 

For F.Y 2011-12

Net Sale proceed                                                                      XXXXXXXXX

Less: Indexed Cost of acqsition       WDV as on 31.03.2007*current year index/2006-07 index

LTCG                                                                                        XXXXXXXXX

Exemption -will be avialable

CAN YOU PLEASE REFER TO PROVSIONS?? OR ANY CASE LAW AS SUCH??