Short term capital asset
This query is : Resolved
sp Gowthaman
(Querist)
30 January 2015
Any asset on which depreciation is claimed by the assessee under the Income-tax Act shall always be a short term capital asset irrespective of period held. whats the logic behind it ??
Nikhilesh Kataria
(Expert)
31 January 2015
Friend,
Nobody can challenge the wisdom of lawmakers in making of any particular provision. Law and logic do not always go in one direction.
Still the obvious logic is that one cannot take double deduction on same asset. Once depreciation is allowed then the assessee cannot be allowed to claim indexation on same asset by treating it a long term capital asset as it will result in double advantage to the assessee.
Nobody can challenge the wisdom of lawmakers in making of any particular provision. Law and logic do not always go in one direction.
Still the obvious logic is that one cannot take double deduction on same asset. Once depreciation is allowed then the assessee cannot be allowed to claim indexation on same asset by treating it a long term capital asset as it will result in double advantage to the assessee.
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Rupesh Jain
(Expert)
31 January 2015
yes it is short term capital gain.
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