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Long Term capital gains zzzz

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Rajat Sharma

Accountant

647 Points Posted on 07 October 2022

Sir with due respect I want to know that I am the owner of commercial building and land which was purchased in the financial year 2018-2019 for Rs 2400000/- now I want to sell the said land and building in the financial year 2022-23 for Rs 3400000/- .Sir on this land and building I have spend a sum of Rs 700000/- Lac on account of renovation to the said building.Sir the said recd.amount will be used in business purposes.Sir I want to know that can I am use this amount for business purposes.Thanks

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Quick Summary

This discussion concerns the sale of a commercial building and land purchased in 2018-19 for £2,400,000 and being sold in 2022-23 for £3,400,000. The owner also invested £700,000 in renovations and wants to know if the sale proceeds can be used for business purposes. Crucially, no depreciation has been claimed on the building, which impacts the capital gains calculation. The advice given is that the funds can be used for business, but potential Long Term Capital Gains (LTCG) tax should be considered.