Short Term or Long Term Capital Gain

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An assessee has sold a factory building which was acquired b4 many years... of abt say more than 10 yrs..... nw during d current financial year he sold d same ..... but the fact is that d assessee has never claimed depreciation on the factroy .... wht shall it b... long term or short term gain???? if short term then wht shall b d wdv...

Replies (12)
Originally posted by :Megha Shah
" An assessee has sold a factory building which was acquired b4 many years... of abt say more than 10 yrs..... nw during d current financial year he sold d same ..... but the fact is that d assessee has never claimed depreciation on the factroy .... wht shall it b... long term or short term gain???? if short term then wht shall b d wdv... "

depreciation is mandatory in nature . it has to be provided whether claimed by assessee or not.the building is a long term capital asset, But the gain will be STCG.

If the asset was used in the business and if it is a depreciable asset, the gain sould be the short term capital gain irrespective of the fact that no depreciation has been claimed. The WDV will be reworked and deducted from the gross proceeds. The short term capital gain will be arrived only when the block is empty with the sale.

Agree with both

yes it will be STCG if Sale Consideration is more than the cost of acquisition as it comes under the defination of depreciable assets.

thnx every1... 4 ur favourable reply...

please send information about short term or long term capital gain

please send information about  Short Term or Long Term Capital Gain

Hi..

Donation give to NGO during the year.. deduction available u/s-80G????

If yes then 50 % or 100 %

reply me...

 an Assessee can claim deduction u/s 80G But 50% of the donation is deductable.

If the organisation to which donation is made has fulfilled the conditions under section 80G(5), then the deductible amount is 50 % of the qualifying amount. Section 80G(4) states that the qualifying amount shall not exceed 10% of Gross Total Income minus deductions under chapter VI A except deduction u/s 80G. Hence, it is not necessary that the deduction will be allowed @ 50% of donations made. One has to ascertain the qualifying amount as per sub section 4 of section 80G.

hi Megha

its me hitesh doing CA PCC i think in the given case ....................

as the factory which is sold is capital asset and even though the assesse has not claim

the depreciation bt as per incometax act the asset has to be depreciated and it is mandatory

so it is Short term capital gain and depreciation is calculated in regular manner...........

 

If the assessee has sold the asset then the depreciation will be calculated retrospectively and the WDV of the asset will be calculated u/s 32.If the sale value of the asset exceed O.C of the asset then it only be termed as short term capital gain.

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