If assessee (in business of real estate) sales land along with container of Rs. 10lakhs (book value) and no separate consideration is charged for container :
whether cost of container is allowed as deduction from sale consideration of land or
loss on sale of asset is to be booked and claimed as business loss or
no deductions allowed at all on any round , if any.
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Income tax on sale of land with container
Replies (1)
Summary: The tax treatment depends on whether the assets are classified as stock-in-trade (taxed as Business Income) or fixed assets (taxed as Capital Gains). If considered a fixed asset, the container (as a depreciable asset) is typically governed by Section 50, resulting in Short-Term Capital Gains, while the land is treated as a separate capital asset. A professional review of your books is recommended to ensure correct classification.
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