Taxation on Depreciated property in a Company

1) A Pvt Ltd Company sells an immovable property.
2) Depreciation has been claimed on the property so balance sheet has the depreciated value.

Queries:
1) How will it be Taxed? will it be considered long term or short term or just Income.
2) can the gain be invested under the Section-54ec bonds for tax benefits?
3) Any other stipulated way to reduce the tax burden.
4) Can the tax liability on the gain be adjusted against the accumulated MAT?

Thank you in advance for the response.

Replies (2)
Quick Summary
This discussion explores the tax implications when a private limited company sells an immovable property on which depreciation has been claimed. Key questions include how the gain is taxed (short-term, long-term, or income), whether Section 54EC bonds can be used for tax benefits, and alternative methods to reduce the tax burden. It also investigates if the tax liability can be offset against accumulated Minimum Alternate Tax (MAT).

1. Short term

2.  As such no, but some case laws have allowed  the exemption in favor of assessee.

3. No tax liability if the block of assets exists.

4. Yes. provided IT utility allows.

2. If it is 'some cases' then it will be ambiguity, if after investment it is not allowed then we end up investing in a low interest deposits without getting the benefit, so is there any way that we can assure that we are eligible for the exemption before doing the investment.

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