Assessee , A partnership firm\u00a0 has huge plot of NA land and has constructed commercial building on some portion of said land and said building was used for business purpose. Upto 31-3-2010, depreciation was claimed with respect to said building.\u00a0 However with effect from 1\/4\/2010, business operations of the assessee was discontinued and so assessee stop claiming depreciation on all of its assets including building.\u00a0 However normal return was filed every year showing losses because certain administrative expenses needs to be incurred.<\/p>\n
During the year, assessee has sold the full property which consist of Land and Building.\u00a0 Land being long term and acquired before 1\/4\/2001, will be classified as Long term capital assets and Stamp duty value as on 1\/4\/2001 will be replaced in place of cost of land and surplus will be long term capital gain.<\/p>\n
But how the surplus from building will be taxed.\u00a0 Will it be taxed at par with land or will it be taxable u\/s. 50 as assessee has availed depreciation on it in past upto 31\/3\/2010.<\/p>\n
In case the surplus from building is taxed u\/s. 50, can asssessee claim it to be Long term capital asset and Does the benefits of investment u\/s. 54EC be obtained by assessee with respect to Capital gain arising from sale of building specially after amendment to section 54Ec with effect from finance act, 2018<\/p>\n
What planning can be made to save tax with respect to Land and building both.<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[795,467,501],"class_list":["post-32017","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-building","qa_tag-depreciation","qa_tag-land"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/32017","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=32017"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=32017"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=32017"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=32017"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=32017"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}