Tax on sale of leasehold plot alongwith factory building
Alpesh Muchhala (Chartered Accountant) (26 Points)
13 March 2016Alpesh Muchhala (Chartered Accountant) (26 Points)
13 March 2016
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 13 March 2016
Alpesh Muchhala
(Chartered Accountant)
(26 Points)
Replied 14 March 2016
Please read my query and give really good reply
CA. Roopali Kadam
(Jobs on assignment basis.)
(1459 Points)
Replied 14 March 2016
As far as I understand the provisions of capital gains,
Land and building are to be assessed separately.
In that case, Land will be STCA or LTCA as per period of holding
Building being depreciable asset, its STCA
STCG @ slab rates i.e 30%
LTCG @ 20% (10% rate benefit without indexation not available to Land & Building)
Wait for other seniors to guide you on deduction part of your query
SUBIR BASU
(ACCOUNTS EXECUTIVE)
(22 Points)
Replied 02 March 2020
My client sold a leasehold plot alongwith factory building on December, 2019 my query is how to calculate capital gain ? On full amount short term capital gain as factory building is depriciable assets attracting 30% ??? Will it be treated as lumpsum sale and attract 20% or 10 % long term capital gain tax ??? Will be able to treat sale of plot leasehold rights by deed of assignments as long term capital gain ?? Tax will be at 20% ? Or 10 ?? If indexation not opted ? IN THIS CASE ANY DEDUCTION ALLOWABLE U/S 54 EC OR ANY OTHER IF AMOUNT INVESTED AND LIMIT IF ANY ?? & in this case factory building being depriciable assets gain will be short term in nature on it ?? Tax @ 30 % ?? Assessee is a sole proprietor. Please arrange to provide a concrete reply.
Y GOPI REDDY
(GREAT POLITICAL LEADER)
(378 Points)
Replied 02 March 2020
Slump sales as per section 50B means
Sale of an entire undertaking (including all assets & liabilities)
Question as to whether your client has only MIDC leasehold plot along with factory building and not having any other assets and liabilities ?
If Yes
It falls under 50B
Accordingly
Based on period of holding it is chargeable as(LTCG/STCG) without Indexation benefit -36 months
Capital Gain = Sale consideration- Net worth of the company
Net worth= All assets- all liabilities
All assets= WDV of depreciable assets + Book value of other assets
If No
land and building are to be assessed separately.
In that case, Land will be STCA or LTCA as per period of holding Building being depreciable asset, its STCA STCG @ slab rates i.e 30% LTCG @ 20% (10% rate benefit without indexation not available to Land & Building).