Treatment of Profit on sale of fixed Asset in computation

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Mr.R has business income so the net profit on business income = Rs.52,517

Capital gains
Now Mr.R sold Residential house and profit on sale of fixed asset = Rs
37,48,000.
Now he invested in purchasing new Residential House which is eligible for exemption under section 54.
so Net capital gains = Nil.


so what will be the effect in Form ITR 3 ??
1) whether it will come under Part A P & L - Other Income - Profit on sale of fixed Asset???

2) Then Schedule BP Computation of income from business or profession
Income / Receipt credited to profit and loss account considered under other heads of income chargeable u/s 115BBF 115BBG -
Capital Gains.


What will be the final effect in Form ITR 3??
Replies (1)
Unless the residential house is used for business purposes it doesn't fall under fixed asset. if at all if it's used for business purposes then there's no Ltcg instead it would be treated as stcg and no 54 deductions allowed for stcg


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