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Is rented building is our fixed asset?

Jatin (Student) (16 Points)

30 January 2019

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.

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7 Replies

Rajput Dhananjayprakash (7 Points)
Replied 30 January 2019

You can not claiming non-cash benefit (Depreciation) on Land and Building what ever nature of Business.

Aashish Bansal (Article) (698 Points)
Replied 31 January 2019

since you have claimed depreciation.. this will be chargeable as STCG...

Jatin (Student) (16 Points)
Replied 31 January 2019

But I have not claimed depreciation in the return .

Abhishek5g (CA) (167 Points)
Replied 31 January 2019

depreciation on building is allowed irrespective of u claimed it or not

Jatin (Student) (16 Points)
Replied 31 January 2019

it means gain on sale is a short term capital gain.

Abhishek5g (CA) (167 Points)
Replied 31 January 2019

yess.. as per section 50

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907) (1306 Points)
Replied 04 February 2019

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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