SVSHAH (CA Final) (122 Points)
16 January 2012Assessee sold the commercial showroom for Rs.20 Lac including furniture and no depreciation was charged either on property or furniture as the Assessee was reciveing the RENTAL income on the said property. The breakup of above LTC in Balance sheet is as follws:
Property: Rs.10 lac
Furniture & Fixtures: Rs. 3 Lac
What will be the impact of Capital Gain Tax on Property & Furniture?
Can the part of the sale proceeds received be used for normal business purpose?
Pls. Advise..
CA Sripal Jain
(Associate Finance)
(709 Points)
Replied 16 January 2012
Dear Svshah,
The whole amount is taxable under the head "Income from Capital Gains" and the proceeds can be used for the normal business process.
Regards
Sripal Jain
praveen
(Chartered Accountant)
(6971 Points)
Replied 16 January 2012
You can treat the whole amount as consideration.
Calculate and take benefit of the CII.
SVSHAH
(CA Final)
(122 Points)
Replied 16 January 2012
can indexation be applied to Furniture as well? even if its not charged to depreciation?
praveen
(Chartered Accountant)
(6971 Points)
Replied 16 January 2012
Yes I think you can take the benefit, but not quite sure.
CAclubindia
