Dear Members,
I would like to have your esteemed views on capital gains taxation query being faced:
A businessman has three business assets in the form of buildings, an office at Delhi, a godown building at Bangalore and a office at Bangalore. All these are put in one block. Due to recession, now office at Delhi and godown building are not being used and depreciation is being claimed only on office at Bangalore. During FY 2005-06,he sells the godown buiding. Will he be chargeable to any Capital gains or only the sale consideration shall be deducted from the block? How the depreciation on office at Bangalore shall be charged?
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Whether any Capital gain or not?
Replies (2)
hi friend.
as you know that dep. is claim only when assed used for business during the period.
it does not effect calculation of capital gain. in given situaion if sale value of asset exceed over wdv of asset and purchase of asset extra amount will cover under capital gain tax as per capital gain for block asset.
as you know that dep. is claim only when assed used for business during the period.
it does not effect calculation of capital gain. in given situaion if sale value of asset exceed over wdv of asset and purchase of asset extra amount will cover under capital gain tax as per capital gain for block asset.
HERE THOUGH THE GODOWN IS NOT USED FOR LONG BUT BEING IN SAME BLOCK WITH BUILDING IT CAN NOT BE SAID THAT DEPRECIATION IS NOT CHARGED ON GODOWN HENCE WHATEVER IS SALE CONSIDERATION WILL BE DEDUCTED FROM BLOCK OF ASSET AND BLOCK WILL CONTINUE .....AND DEPRECIATION WILL BE CHARGED ON REMAINIG VALUE MAY BE NIL
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