Question ID : 41079

CAPITAL GAIN ON SALE OF PART OF PROPERTY

The major income source of company is from rent on building. The land was purchased by company in 2011-12 and the multiple floors was constructed during 2012-13. The company was claiming depreciation on the building from 2012-13 and the cost of land are also in the books of accounts as asset. Out of multiple floors, one floor is sold out during 2020-21. So, I want to know that the gain from the sale of floor is long-term capital gain (LTCG) or short-term capital gain (STCG) for company. Seller gives Rs.2cr for the floor, in that case how I can calculate the sale amount of land and building out of Rs.2cr.

posted by CA Neha Gupta on Jun 19 2021 12:00AM