Section 54GB of the Income Tax Act, 1961 in India provides for the exemption of long-term capital gains tax arising from the sale of a residential property when the capital gains are invested in a specified small or medium enterprise (SME). This section encourages individuals to invest in SMEs and thereby promote economic growth. Section […]
Section 54H of the Income Tax Act, 1961 in India provided for an extension of time for acquiring a new asset or depositing or investing the amount of capital gain in the case of compulsory acquisition of land or buildings. Here we analyze Section 54H under Capital Gains towards Extension of Time for Acquiring New
Section 54H of the Income Tax Act, 1961 in case of Capital Gain Read More »
The Capital Gains Accounts Scheme (CGAS) 1988 is a scheme under the Income Tax Act, 1961, in India. It is designed to help taxpayers avail tax benefits on capital gains arising from the sale of assets like real estate or certain financial assets. [Notification No. GSR 724(E), dated 22-6-1988 reported in 172 ITR (St.) 54]
Capital Gains Accounts Scheme (CGAS) 1988 Read More »
Here we describe all the Provisions towards Calculation of Tax on Short-term Capital Gains under Section 111A in case of Equity Shares and Units of Equity Oriented Fund. Where the total income of an assessee includes any income chargeable under the head “Capital Gains”, arising from the transfer of a short-term capital asset, being (i)
(1) Conditions to be satisfied for applicability of Section 112A [Section 112A(1)]: Notwithstanding anything contained in section 112, the tax payable by an assessee on his total income shall be determined in accordance with the provisions of section 112A(2), if the following conditions are satisfied: (i) the total income includes any income chargeable
Tax on Long-Term Capital Gains under Section 112A in Certain Cases Read More »
Chargeability/Scope/Meaning of Income under the head “Profits and Gains of Business and Profession” under Section 28 to 44D has been explained with practical examples for the AY: 2022-23 & 2023-24. 1. Table showing how to compute “Profits and Gains of Business and Profession” A. Income from sources other than speculation business 1. Net
Section 30 to 35 covers the following expenses Allowed as Deduction while computing Profits and Gains of Business and Profession. Meaning of the term ‘paid’: Before we discuss the specific expenses, it is necessary to understand the meaning of the term ‘paid’, which will be used in relation to these expenses. According to section 43(2)
List of all Other Deductions which are specified under section 36 of the Indian Income Tax Act,1961, for computing income arising from Business and Profession. Deductions which are specified under section 36 for computing income arising from Business and Profession include the following: 1. Insurance premium of stocks [Section 36(1)(i)]: The amount of any premium
Section 36-Other Deductions -Profits and Gains of Business and Profession Read More »
Any expenditure (not being expenditure of the nature described in sections 30 to 36) and not of capital or personal expenses are allowed as deduction under section 37(1) Any expenditure (not being expenditure of the nature described in sections 30 to 36) and not being in the nature of capital expenditure or personal expenditure of
General Deductions [Section 37(1)] -Profits and Gains of Business or Profession Read More »
Notwithstanding anything contained in sections 30 to 38, the following amounts shall not be deducted under section 40(a), 40(b), 40(ba) in computing the income chargeable under the head profits and gains of business or profession. 1. Disallowance In the case of any assessee [Section 40(a)] (i) Any interest, royalty, fees for technical services, or
