Stcg or ltcg ?

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2016 Plot Purchase in 2011 and constructed house in F Y 2015 and now sold in 2016 the same it is Short Term Capital Assets or Long Term Capital Assets..?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 February 2016 Plot is long term asset. Building is short term asset.

Querist : Anonymous

Querist : Anonymous (Querist)

13 February 2016 Thanks for reply but how to compute ltcg and stcg ?

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Suresh Ramaswamy

Suresh Ramaswamy (Expert)
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15 February 2016 The cost of land without development and construction costs will be the cost of acquisition for the land. All other costs pertain to the building. However, if a composite sale deed is made for the sale of the property, as is usually done - building with land appertuant thereto, then the entire consideration is short term capital gains.

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2016 Thanks....Mr..Ramaswamy...We consider it is LTCG as u firstly saying..Cost of Icqu and Cost of Improvement..but Sale deed is made with Residential House...so we going right way... ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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16 February 2016 1. Capital gain for land and building has to be computed separately, land being long term and building being short term.

2. My observations are based on Madras high court decision in the case of
CIT Vs. Dr. D.L. Ramachandra Rao [1999] 236 ITR 51.

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2016 Thanks to Mr Chackrapani for reply and Cited the Case law....But Mr. Chackrapani your mentioned Case law of 1999 and I think after that there may be amendment and or any other case law which override the your cited case law...?