Capital Gain

[CHETAN CHOTALIYA]

Respected sir, We are a partnership firm, we have some questions, so please clarify and help us

1- We had purchased factory land Date:- 07/08/2001.

2- We have built a factory building on this land on date:- 29/06/2003.

3- Land And Building Both A/c. are separately in books of account.

4- We have claimed depreciation on the building.

5- Revanyu Advocate will make the deed whole of the building.

6- We don't invest 54 to 54GA.

Now, we are selling the factory, Can the cost of construction be merged into the cost of land? or, Can that be shown in the improvement cost?
Please, Give the guidance for saving the Capital Gain Tax?.
Thanking You.

AI Summary

Partnership firm seeks advice on merging land and building costs to reduce capital gains tax on factory sale. A partnership firm seeks guidance on capital gains tax implications related to selling their factory. They purchased land in 2001 and constructed a building on it in 2003, maintaining separate accounts for both and claiming depreciation on the building. They inquire whether the construction cost can be merged with the land cost or shown as an improvement cost to minimize capital gains tax. They also mention not investing under sections 54 to 54GA. They seek advice on how to save on capital gains tax in this scenario.