Depriciation!!

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JaydeepVora (Querist)
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01 March 2014 On which base, it can b decided that weather it is allowed or not to get depriciation on Commercial Office?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 March 2014 If the office is used for the purpose of business or profession, then depreciation is admissible.

JaydeepVora

JaydeepVora (Querist)
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03 March 2014 Ok, Thanx!!!
Now what if i sell the commercial property at Rs. 4 lacs, book value of which is 1 lac in last balance sheet after depriciation.

Here short term capital gain tax applicable on the gain occured @ 10%, or this gain is to be added to regular income?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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03 March 2014 Since a depreciable asset is sold, short term capital gain will arise u/s 50.

Short term capital gain arising on transfer of property is taxable at normal rates & not at 10%.

It will be taxed at normal tax rate.

JaydeepVora

JaydeepVora (Querist)
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03 March 2014 Ok, Thanx!!!

Now what if i buy new commercial property worth 4 lac in the same year on which i will take depriciation?

Do i get the set off of the gain on property sold against the purchase of new property?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 In that case the block of asset DOES not cease to exist.

Secondly, if the cost of the new asset + Opening WDV is GREATER than the sale price of the old building, NO capital gain will arise.

Eg.
Opening WDV 10,00,000
Purchase 4,00,000
Sale 5,00,000

Balance 9,00,000

No capital gain will arise. You will get depreciation on Rs. 9 lakhs.

JaydeepVora

JaydeepVora (Querist)
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04 March 2014 Thank You much Mr. Sidhhartha Bhardwaj!!!

I really appriciate!!!

JaydeepVora

JaydeepVora (Querist)
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04 March 2014 Thank You much Mr. Sidhhartha Bhardwaj!!!

I really appriciate!!!

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 March 2014 You are welcome. You should use the thanks button to convey your thanks.

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