plz CALCULATE

WHETHER THIS SOLUTON IS RIGHT ????????

HOW IT IS TO BE TREATED ????????

hi friends

i am doing articleship in govt organisation means outsourcing

i want to know that is earning of govt organisation liable to income tax on their earing

the another question is : consolidated fund of india attract income tax?

Firstly

As per CIT vs C. R. SUBRAMANIAN :- In case of sale of a land along with the building constructed thereon, for the purpose of Capital Gains, Site & Building were treated as seperate assets and period of holding to be checked for both assets separately.

Hence in the above case capital gain will be Long Term Only

Secondly 

Now the capital Gain is (as per information provided)

Sale Consideration              39.50 Lac

Less: Indexed COA              12 Lac * 551 / 389 = Rs. 16,99,473

Less: Indexed COA               2.25 Lac * 551 / 140 = Rs. 8,85,536

Hence Capital Gain is         Rs.13,64,991

Pls let me know if there is any mistake on my part

correct

Land & Building to  be treated as seperate assets and period of holding to be checked for both assets separately.

Sale consideration shall be divided in parts as per the agreement of sale.

Long term Capital gain for Land and hence indexation should be done

Short term capital gain for building as per Sec 50 which states that incase of depricable assets there will be only short term capital gain/loss. so no indexation

Hi Shikha, Rajeev, Abbasmishra

I do not agree with your views as on building you are claiming depriciation under PGBP head and then while calculating LTCG you are dedcuting whole 12 Lac , it would mean that you claiming double credit on depriciable amount.

Solution provided by Yogesh seems to be correct

Sec 50 & 50A suports the solution

it was judicially held that where land and building are sold together, land being long term capital asset and building being short term capital asset either because it is newly constructed or it is so treated by virtue of sec. 50, separate computations shall be done in regard of both land and building and sale consideration should be split up so as to compute STCG in regard of building applying block concept and LTCG in regard of land applying normal CG provisions.

from exam point of view if this problem is taken, it can be further added that in the absence of opening WDV, the computation of capital gain in regard of building shall be done applying normal CG provisions and no split up is required henceforth.

one issue though remains here is when opening WDV is given but split up of consideration in between land and building is not given.......

Shouldnt Section 50C be applicable for SLump Sale ? it will be a LTCG but no indexation benefit allowed ??