In India, the Income Tax Act provides various exemptions to taxpayers to encourage investments and promote economic growth. One such exemption is provided under Section 54F of the Income Tax Act, which deals with the exemption of capital gains on the transfer of assets other than a residential house. Section 54F of the Income Tax […]
Under Section 54G, the Exemption is available to all categories of assessees in respect of Capital Gain arising on the transfer of fixed assets other than furniture and fixtures of industrial undertaking effected to shift it from an urban area. The conditions for claiming exemptions are as under: (i) the transfer is effected in
Section 54GA of the Income Tax Act provides an exemption on capital gains arising from the transfer of assets by an industrial undertaking or a ship or a hotel. This section aims to promote the growth of industries and encourage investment in the country. The exemption is available to all categories of assessees in respect
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]
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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)
