exemtion u/s 54F

Boss...Depreciable asset can never attract Long term capital gains.....

It is always short term only even if u hold them for more than 3 years in the Business...

No sir,

Long term capital gain is not allowed on Depriciable asset. it will always be a short term capital gain.

Originally posted by : VINEET NAHATA
	can a short term capital gain arising on sale of a long term depreciable asset be exempt u/s 54F

 As per the recent case law in this regard, it has been held that Section 54F contains that in order to claim exemption it should be Long Term Capital Asset. Depreciable Asset is in fact long term capital asset but according to Income Tax Act,1961 it has been held that profit or loss arising out of sale/discard etc. should be traeted as Short Term Capital gain /loss (as the case may be). So nothing in this section restricts the assessee from claiming exemption for depreciable asset.

Depriciable Assets never fall under the section 54F. Section 50C is applicable. And according to which it is STCG. nd no exmeption allowed.........

i have dis doubt cos sec 54F talks of LTCA n not of LTCG??????

It is long term capital gain but not long term capital asset,

U can get the clarity of the concept on Depreciable asset in Sec 50 which says that computation of Capital gain on Depreciable asset ,Which is always Short term but not long term.

hey realy i apriciate ur question. Yeah u may b right coz in Sec 54f it is written "Capital gain arising on the transfer of long term capital assets...." here it is not said that long term capital gain but rather it is written that capital gain which should be any  long term or even short term, arising on transfer of long term capital. So capital gain arising on sale of long term depriciable assets is short term capital gain u/s-50A which may be exempt u/s-54f. i will tell after refering other prov if any for that.

Hey Vinit....

I have conformed about this from my sir that u can get exemption Us-54f provided such assets is long term.

Hi Friends,

Capital gain on sale of depreciable asset would always be considered as short term capital gain and as such benefit of section 54F would ot be available as it is available only for long term capital gain. Since the capitalgain/loss on sale of depreciable asset would be considered as shrt term capital gain always, benefit under sec 54F would not be available.

Regards,

manoj

The exemption on short term capital gain is expemt only for 54 BDGGA samjhe

Dear All

I am not agree with all of u. STCG on depriciable assets can be eligible for exemption U/s-54F.

Because in Sec-54F it is clearly written that Capital gain arising on transfer of any long term capital assets, other than residential house property, shall be eligible for exemption.

That means any capital gain whether Shor term or long term is eligible for exemption under this section provided assets is long term capital assets. so we have to see the time duration of holding of capital assets whether it is hold for more than 36 months or not.

Hance capital gain arising on sale of Long term capital assets is eligible for exemption U/s-54F even though such capital gain is deemed as short term by virtue of provision of Sec-50A.

Coz in that provision it is written that such gain is deemed as short term capital gain. There is no provision which makes such assets as Short term capital assets.

So we can avail the exemption U/s -54F on capital gain arising on sale of Long term depriciable assets.

So it is requiest to all of u plz refer the provision what is says..........