Sale of building

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Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2012 We are selling one building in the name of our company.What are the taxes applicable against such sale.

Suresh Mittal

Suresh Mittal (Expert)
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24 July 2012 Building consists two parts
1. Land
2. Building
Since Land is not depreciable assets and if your holding period is more than three years, then you will be entitled for indexation on cost of Land and gain on sale of Land would be LTCG and would be subject to tax @20%.
Builing is a depreciable assets, so the gain on sale of building part would be STCG and would be taxed with regular income @30%.

SANYAM ARORA

SANYAM ARORA (Expert)
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24 July 2012 Agree with Mr Mittal

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Querist : Anonymous

Querist : Anonymous (Querist)

25 July 2012 Thanks for reply......one more doubt Is any particular section in IT act for determining sale value or Actual value or guide line value as per govt.agency whichever is higher

Suresh Mittal

Suresh Mittal (Expert)
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26 July 2012 Pls see Sec 50C of IT Act,1961. As per that sec, if the sale consideration is less than the value adopted by Any authority of State Govt. for purpose of Stamp Duty, then that value shall be taken as full value of consideration.