CA. Megha Topiwala (Job) (1534 Points)
07 August 2009An 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...
Amit
(Article)
(403 Points)
Replied 07 August 2009
| 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.
Satish
(CA Final Student)
(479 Points)
Replied 07 August 2009
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.
CA PRAMESH AGARWAL
(Profession)
(152 Points)
Replied 08 August 2009
yes it will be STCG if Sale Consideration is more than the cost of acquisition as it comes under the defination of depreciable assets.
CA. Megha Topiwala
(Job)
(1534 Points)
Replied 08 August 2009
thnx every1... 4 ur favourable reply...
shivanand s.k.
(3rd sem)
(30 Points)
Replied 08 August 2009
please send information about short term or long term capital gain
shivanand s.k.
(3rd sem)
(30 Points)
Replied 08 August 2009
please send information about Short Term or Long Term Capital Gain
keyur
(student[ca final])
(339 Points)
Replied 08 August 2009
Hi..
Donation give to NGO during the year.. deduction available u/s-80G????
If yes then 50 % or 100 %
reply me...
Ravi kant
(CA Final Student)
(26 Points)
Replied 08 August 2009
an Assessee can claim deduction u/s 80G But 50% of the donation is deductable.
Satish
(CA Final Student)
(479 Points)
Replied 09 August 2009
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.
Hitesh S Dholkiya
(B.com, CA Final)
(40 Points)
Replied 10 August 2009
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...........
Vikram Deol
(CA)
(151 Points)
Replied 11 August 2009
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.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
