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Originally posted by : Jaisika Kukreja
	look ..m doing taxation of companies n while calculating book profits under MAT provisions both this given in question i.e excess realized on sale of land held as investment rs. 30 lacShort term capital gain on sale of land mentioned above rs. 40 lac treatment ..????

Realisation and gain are 2 disparate things but maybe the same in some cases.

Take a case of applicability of S.50C, in that case, STCG would be more than the excess realised. Other case is where the case is referred to the Valuation officer.

Further, the gain has to be computed by following the provisions of the Act. Whereas for excess realisation, may only mean an excess of realisation over the cost. This cost may or may not include stamp duty for eg if S.80C is opted and the stamp duty charges are not capitalised.

Other difference would be of the cost of transfer.

Where a business asset is sold and there is a loss, then that is treated as per PGBP provisions i.e if FVC>WDV then it would be a PGBP income and in that case, cost of transfer would go into P&L but if there is a capital gain, eg FVC> original cost then gain has to be computed as per S.48, wherein cost of transfer is necessarily to be deducted from FVC.

Definitely, there could be more scenarios. S.43(1) can also impact the cost. Since this case is concerned with Cap gains, therefore I do not want to go much into PGBP chapter.

A difference would also arise if S.50D is applicable because there we are considering the Fair market value and not the actual value.

A difference would also arise if S.49(4) is applicable because there we are considering the value taken u/s 56(2)(vii)/(viia)(x)

Similarly, S.49(5), as there also we have the concept of FMV

49(6) even 49(1).... I think I should mention entire S.49 and S.48.

Therefore, there could be differences.

Originally posted by : Jaisika Kukreja
	Excess realise on sale of land or STCG on sale of land ..r same thing or diff ..??

The answer is in respect to this post.