Sale of Commercial Property-Capital gains

one of our client is having a block of commercial (real estate) properties under 10% depreciation. He wants to dispose of one of the property. As per Sec 50 of IT Act, can we reduce the sale proceeds from the block so that there is not capital gains tax arises (the block value doesn't become nil)?

If the client doesn't want to reduce the fixed assets from the block, can we calculate capital gains as per normal properties (indexation and LTCG)?

Can someone throw light on this?

Replies (4)
Quick Summary
This discussion explores the capital gains tax implications when selling a depreciable commercial property. It questions whether sale proceeds can be reduced from the asset block under Section 50 of the IT Act to avoid capital gains tax. The thread also considers alternative methods for calculating capital gains, such as normal property rules with indexation and long-term capital gains (LTCG), if the client chooses not to adjust the fixed asset block.

Sale of capital asset real estate constitute capital gains then as per it act, the sale proceeds are credted . tenure of holding long term or short term as the case may be.
As the assets is depreciable in nature, you would reduce the sale proceeds from block of assets.
Thank you both for your response.
Welcome sir

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