Bussiness property sold

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bhavin shah (Querist)
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22 January 2013 Dear Sir,

I Purchase Business Shop in April 2006 at Rs. 6 lacs. I used for my business purpose which is gift shop. At the End of June 2012 i Closed my business and this shop (which wdv as on 31st March 2012 is 3.80 lacs) given as Rent amount rs. 15000 per month.

I will sold my shop in March -2013 at amount of Rs. 15 lacs. and as on 31st March 2013 by shop wdv 3.60 lacs.

1. Pls. give me how much my Capital gain...? Whether is it Short term/ Long term and at which rate and how much pay tax.

2. If possible then, Pls. give in where i have to invest so that i have save my tax and which of theses buy House property / Bonds/ Commerical Property in with in what time period.

Pls. give in detail clarification on above.

Pls. given in urgent basis on my id : bhavin.cma@gmail.com

Thanks in advance....

SANJAY TALATI

SANJAY TALATI (Expert)
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30 January 2013 As in your case the asset transferred is a Depreciable Asset, the provision s of Sec. 50 would be attracted and the capital gain would be STCG.

Full Value of Consideration Rs. 15,00,000
Less : WDV at the beginning of the year Rs. 3,80,000
==========
Short Term Capital Gain Rs. 11,20,000

You can avail the exemption u/s 54EC by investing the capital gain amount within a period of 6 months in the long term specified assets. Long term specified assets means bonds issued by NHAI (National Highway Authority of India) and REC if such bonds are redeemable after 3 years.

Benefit under sec. 54EC is available even on transfer of depreciable asset. CIT V. ACE Builders Pvt. Ltd. , Himalaya Machinery Pvt. Ltd. V. Dy. CIT Tax Appeal no. 271 of 2012