Capital Gain on Sale of Land and Building

This query is : Resolved

VIPIN GUPTA (Querist)
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05 March 2021 Dear sir,
We have sold Land and Building of a factory on building we were claiming depreciation. The Factory is closed Since 2008. WDV of the Building as on 31/03/2008 was Rs 5 Lacs. Now the Problem is the registry does not contain bifurcation of Land and Building. Can we arrange for Valuation of the Building and take it as its sale consideration and balance for Land. Or We have to Take RIICO DLC rate for land and balance for Building.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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15 March 2021 There is no hard and fast method to it. But, it is better if you have a value given by the stamp value authority as per section 50C. You may take empty land value from them. The balance amount may be apportioned to building.

Also check, along with the land and building, whether the assessee is selling any assets! In such a case avail the benefit of slump sale u/s 50B. But, in case of slump sale, the entire business cannot be sold.

Watch my videos on YouTube on capital gains. https://youtu.be/2pjQCDFHHSs