Wednesday, May 16, 2012


The Delhi High Court has held that section 50 of Act is applicable only in respect of sale of a capital assets forming part of a block of asset in respect of which depreciation has been allowed. As no rate
of depreciation has ever been prescribed for land, it does not form part of 'block of assets'. Thus, the deeming provisions of section 50 are not applicable in case of transfer of land (even if sold along with depreciable building). The surplus of sale price over indexed cost of acquisition would be taxable as long term capital gain if it is held for more than 36 months


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