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Stcg/ ltcg

Rahul jain (LEARNING & TEACHING) (435 Points)

08 March 2014

GUD MRNG....

dear frnds i have a shop, i which my business is running and on this shop i take the benifit of depriciation evry year....

i want to know the if i sell the said property after three year of its acquisiton than which kind of gain it will be???

whther it will be LTCG or it will be STCG????

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4 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 08 March 2014

Dear rahul In your case it will be long term capital gain as you have completed 3 years from the date of acqusition. But if due to sale of this asset the block get exhausted then it will come under stcg.( calculation is done on the same taking the effect of depriciation) I hope your query is solved regards

Rahul jain (LEARNING & TEACHING) (435 Points)
Replied 08 March 2014

if i have other assets in same block but i m not selling them,they remain as it is...then my shop will covered under LTCG.???

CA Saroj Kumar (Keen to learn something new every moments) (2588 Points)
Replied 08 March 2014

Dear as of u are taking the benefit of depreciation every year it means whenecer u will sell the property u have to compare ur sale price with WDV value of shop in such a case there always be STCG however if the entire block will be sold then the case may be differecnt but already mentioned that not such a cse hence in ur case STCG will be arise.