Indexation of building in capital gain

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Can anyone plz tell me that why a House property and a building is eligible for indexation.....though they are depreciable assets....? Plz rply......

Replies (3)

Dear if the House or Building is used in business where depreciation is being claimed under Income Tax Act, then Indexation benefit will not be allowed and such assets are not eligible for Indexation.

Here we provide depreciation whereby we are charging off Depreciation to the Books of accounts and getting benefit of time value. Thus, whenever we sell this assets, it would be treated as either Short term Capital Gain or Loss.

Depreciation and Indexation benefits cant be claimed simultaneously. Indexation is allowed only for Long term Asset.

 

Thanks

 

Mihir Doshi

A house or a building used for the purpose of business is only a depreciable asset and as such they don't qualify for indexation.

A house property not eligible for depreciation if the house property is used for personal domicile, and when sold is eligible for indexation. the only condition being both land value and building value is mentioned in the sale deed and accepted by Regitration department 

 

 

 


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