I have sold a building used for business which was depreciable and the depreciation is claimed by me on the same. Am I eligible for benefits under section 54EC?
I have sold a building used for business which was depreciable and the depreciation is claimed by me on the same. Am I eligible for benefits under section 54EC?
Yes.
If you have held the asset beyond a period of five years, you are eligible to
claim benefits even though the depreciation on the same was claimed by you.
This view is supported by numerous decisions of higher judiciary.
Everyone i.e. Individual, Firm, HUF, Company, etc. can take advantage of the presumptive taxation scheme of section 44AE and all business are also eligible for it.
No. Since you have demolished the building yourself and what you sold is actually your rights in the land, you may not be eligible for benefits under section 54 of the Act.
Yes. The word ‘purchase’ in section 54 ordinarily means buying for a price or equivalent of price by payment in kind or adjustment towards an old debt or for other monetary consideration. There is no stress in the section on ‘cash and carry’.
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