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Is rented building is our fixed asset?

1144 views 7 replies
Hi Friends!!

One of my client is engaged in Real Estate business. He has one building booked as Fixed asset in the books and claiming depreciation on it.

He rented out that building and showing rental income as income from house property in his return of income.

Now he wants to sell that property.

I want to know whether gain on sale is STCG or LTCG or Business Income.
Replies (7)
You can not claiming non-cash benefit (Depreciation) on Land and Building what ever nature of Business.
since you have claimed depreciation.. this will be chargeable as STCG...
But I have not claimed depreciation in the return .
depreciation on building is allowed irrespective of u claimed it or not
it means gain on sale is a short term capital gain.
yess.. as per section 50
you can calculate seprate gain on land and building. On land LTCG and on building STCG if it is business asset you had charged dep on it.
If such building is held as investment then LTCG on both land and building if both land and building are long term asset.


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