Type of capital gains in case of depreciable assets
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
04 December 2011
If by sale of any capital assets in which depreciation has been claimed,then its a short term capital gain/loss.
is there any exception?
referring to power generating units claiming depreciation on SLM basis.
in this case can the gain/loss arising out of sale of such an asset be a long term gain/loss?
is there any exception?
referring to power generating units claiming depreciation on SLM basis.
in this case can the gain/loss arising out of sale of such an asset be a long term gain/loss?
05 December 2011
Gain/Loss arising from sale of depereciable asset is always short term.At the time of computation block must be cease to exist. in case of power generating unit wdv of individual asset should be consider. There is no specific exemption for this STCG.
06 December 2011
Hi,
In case of transfer of Depreciable Assets, Sec 50 is applicable, By virtue of Section 50, CG on Trf of a Dep Asset shall be treated as STCG no doubt about it,
But, Nowhere Section 50 says tht, for the purpose of Sec 54 EC , Depreciable Asset would be treated as Short Term Capital Asset, Sec 54 EC is an Independent Section
AND
Therefore 54EC benefit is Available notwithstanding the fact the Gains is STCG, but Assuming the asset was held as Long term.
Please Refer to the following Judicial Decisions.
1) CIT v/s Assam Petroleum Industries (P) Ltd {2003} 131 TAXMAN 699 (Gau.)
2) CIT v/s ACE Builders (P) Ltd {2005} 144 TAXMAN 855 (Bom.)
Thanks
Regards
CA.Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
In case of transfer of Depreciable Assets, Sec 50 is applicable, By virtue of Section 50, CG on Trf of a Dep Asset shall be treated as STCG no doubt about it,
But, Nowhere Section 50 says tht, for the purpose of Sec 54 EC , Depreciable Asset would be treated as Short Term Capital Asset, Sec 54 EC is an Independent Section
AND
Therefore 54EC benefit is Available notwithstanding the fact the Gains is STCG, but Assuming the asset was held as Long term.
Please Refer to the following Judicial Decisions.
1) CIT v/s Assam Petroleum Industries (P) Ltd {2003} 131 TAXMAN 699 (Gau.)
2) CIT v/s ACE Builders (P) Ltd {2005} 144 TAXMAN 855 (Bom.)
Thanks
Regards
CA.Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 December 2011
CA LOHITH JAGADEESH & CA AMRESH KUMAR MISHRA thanx a lot!!!!!!!its been so kind of u to help me....
thanx once again....
thanx once again....
08 December 2011
Hi,
Your welcome.
Regards
Your welcome.
Regards
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