Depreciation and indexing

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kritika poddar (Querist)
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13 January 2013 Sir,

If a person purchased a property of Rs 1 lac in 2004 which after Depreciation having B.V of Rs, 80000.

In 2012, the same property is sold at Rs, 150000

Kindly say about the capital gain after indexing and depreciation.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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13 January 2013 In case depreciation is provided on the property, indexation is not allowed.
.
150000-80000=70000 will be short term capital gain.
.

anurag

anurag (Expert)
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13 January 2013 Agree with the expert..

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kritika poddar

kritika poddar (Querist)
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23 January 2013 Sir, how will it be short term capital gain??

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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23 January 2013 Due to Special Effects.
.
Section 50 is a specific provision for computation of capital gains on depreciable assets. According to special features of this section the capital gains arising on transfer of depreciable assets are are treated as short term only.