Capital Gains on Sale of Shop & other property

RAJ (CA) (120 Points)

21 November 2009  

 

My client an NRI:,
(1) had a commercial Shop in a Mall (C.O.A Rs.18 Lacs), he had rented the same to earn Rent/ Profit, The Income generated was shown as Business Income in all P.Y’s Returns & Dep. has been claimed on the acquisition value of Shop. Now he sold the said shop for 42 Lacs (after 5 years) & purchased another Big Shop in same F.Y for Rs. 86 Lacs. Will provisions of Section 50 apply & are the gains treated as STCG exempt by virtue of provisions of Section 50.
(2) had an old tenanted property, which was re-developed in year 1990, he was allotted 2BHK flat in lieu of the old tenanted property. Now he sold the same for Rs.65 Lacs. Will the complete amount treated as LTCG?