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Capital gain

14 October 2018

whether a firm/company can claim indexed cost of acquisition on transfer of land (fixed asset) held for more than 3 year or STCG has to be calculated u/s 50 of I.T.Act?
however, section 50 is applicable to depreciable assets, but we dont claim depreciation on land

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Gauthami (Student CA Final ) (431 Points)
Replied 14 October 2018

if land is long term capital asset, indexed cost of acquisition will be reduced from sale consideration. if sale consideration can't be determined then fair market value on date of transfer shall be considered

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Rakesh Joshi (CA Final) (1272 Points)
Replied 14 October 2018

Indexation benfit is allowed as per Section 48. I ithink since land is not a depreciable asset Section 50 is not applicable.

Exemption u/s 54EC is also allowable since the section does not uses the word Individual / HUF specifically. It uses the word Assessee and Assessee can be a company / Firm also.

navi ave (6 Points)
Replied 14 October 2018

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navi ave (6 Points)
Replied 15 October 2018

Originally posted by : navi ave
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