Tax for property selling
oyayubihime
(Querist) 13 November 2013
This query is : Resolved
In the case of Pvt.Ltd company.
Property was purchased in 2006. It is under depreciation in audit. This property is factory and was used for business.
Kindly tell me, income tax should be paid 30% or 20% in this case? What condition is applicable for 20%?
Also tell me how to say "thank you" for experts who give me reply.
malipeddi jaggarao
(Expert) 14 November 2013
Income Tax need not be paid on the property. The tax has to be paid on the income of the company. Depreciation on fixed assets is allowed while calculating the profit. All these things will be taken care by your Chartered Accountant.
Regarding saying thanks - to be frank, I am not aware of the process
C. SANJEEVA RAO
(Expert) 14 November 2013
You can avail the benefit of exemption under section 54G of the Income-tax Act,1961 and since it is a depreciable asset, your gains shall be treated as short term capital gains/loss, in the case of short term capital gains, tax has to be paid at the normal rate i.e. @ 30% + Education Cess or otherwise, @ 20% + Education Cess. The tax shall be chargeable as per section 111A or 112 of the Income-tax Act,1961. For thanks, you can convey @ taxationlawyer@hotmail.com
R.K Nanda
(Expert) 14 November 2013
nothing more to add.
Rajendra K Goyal
(Expert) 14 November 2013
Consult your tax adviser and show him all the documents.
The question is not clear whether the tax is to be paid on business factory on sale of assets or tax rebate on depreciation on it. Depreciation is separately allowed in land and building and machinery. specific reply can not be given in absence of full information.
