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.
Menu
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.
Recent Topics :
- Sale of shares in indian company by a non resident
- Difference in TIS
- GSTR-9C Upload Status Error Occured
- “Income Tax Implications of Company-Related
- Advice needed: Hypothetical case of non-filing of
- Demand Raised for Cess Amount Despite Section 89 R
- WRONG BILL NO FILED IN GST R1
- Addtional trade name for my another firm
- Commission / Agency Business without books: REAL E
- Difference between AIS and 26AS data.
Related Topics :
CAclubindia
