Whether it is long term capital gain (or) short-term capital gain
suresh
(Querist) 26 September 2012
This query is : Resolved
Dear sir,
A Pvt limited company sale of land and building Rs.12,00,000 ,cost of acquisition of land Rs.2,00,000 in the year 1993-94 and the company constructed building and capitalized in books Rs.5,00,000 ,depreciation claim on such building, WDV value of building as on date of sale Rs.3,00,000.
company followed
total sale consideration -land value -WDV value of building (i.e; 12,00,000 -2,00,000-3,00,000=7,00,000)
Rs. 7,00,000 is treated as Short-term Capital gain .
whether it is correct or not
if it is not correct Plz tell me
how to calculate the Long-term Capital gain & Short-term capital gain
M V Gupta
(Expert) 27 September 2012
The land is definitely LT capital. If the building has been constructed more than three years ago it also can be regarded as LT capital. You may accordingly follow the indexed cost of acquisition and arrive at the CG.
