Tax alert: Long-term capital asset on which depreciation is claimed, eligible for exemption under section 54F has been saved
Article
Tax alert: Long-term capital asset on which depreciation is claimed, eligible for exemption under section 54F
12 December 2024
The Mumbai Bench of the Income-tax Appellate Tribunal has held that capital gains on sale of long-term capital asset, though deemed to be considered as short-term capital gains under section 50 of the Income-tax Act, 1961 (ITA), would be eligible for exemption under section 54F of the ITA. The ITAT further held that in case of depreciable asset, where depreciation has been claimed in earlier years, the computation of income on sale of such asset shall be made after considering provisions of section 41 of the ITA.
