Ameet (L) (1678 Points)
27 November 2009What will be the treatment of tax implication?
land purchased - 01/04/1984 - Rs. 1,00,000/-
building construction Cost- 10/04/1985 - Rs. 2,50,000/-
Deprecition Charge from construction at 10% in the balance sheet
Sale of Land & Building - 25/11/2009 - Rs. 20,00,000/- ( No alocation over land & building)
Devendra
(Article)
(72 Points)
Replied 28 November 2009
Im not sure but i think this would be considered as a slump sale and the WDV of the building would be added to land cost. Difference between this summationand sale price will be taken as STCG or STCL
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 28 November 2009
its not a slump sale.
tax will be calculated on land and building seperately.
seperately on land
and seperately on building. you have to differentiate the sale consideration in to two parts.
Further there will be STCG on Building as it is depreciable asset and LTCG on Land because its a non-depreciable asset.
CAclubindia
