Any profits or gains arising from the transfer of a capital asset effected in the previous year, shall be chargeable to income-tax under the head ‘Capital Gains’ and shall be deemed to be the income of the previous year in which the transfer took place unless such capital gain is exempt under section 54, 54B, …
Meaning of Capital Asset [Section 2(14)] – Capital Gain Read More »
Here we discuss all the Provisions towards Computation of Capital Gain in certain Special Cases and the method of Computation is different. 1. [Section 45(1A)]: Capital Gain in case of amount received from an insurer on account of Damage or Destruction of any Capital Asset Where any person receives at any time during any previous …
Computation of Capital Gain in Certain Special Cases Read More »
Section 55(2) – Cost of Acquisition of Capital Asset for Computing Capital Gain Cost of acquisition is the price which the assessec has paid, or the amount which the assessee has incurred, for acquisition of the asset. Expenses incurred for completing the title are a part of the cost of acquisition. Interest on money borrowed …
Deemed Cost of Acquisition of Capital Asset for Computing Capital Gain Read More »
Where any person receives at any time during any previous year any money or other assets under an insurance from an insurer on account of damage to, or destruction of, any capital asset, as a result of— (i) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or (ii) riot or civil …
(1) Unit Linked Insurance Policies (ULIPs) have gained popularity as a dual investment-cum-insurance product. ULIPs offer individuals the opportunity to invest in various asset classes while providing life insurance coverage. However, when it comes to the maturity of a high premium ULIP, there are certain tax implications to consider. (2) Under Section 45(1B) of the …
(1) In the world of business and taxation, there are various provisions and regulations that govern the treatment of capital assets and stock-in-trade. One such provision is section 45(2) of the Income Tax Act, which deals with the capital gain on the conversion of a capital asset into stock-in-trade. In this blog post, we will …
[Section 45(2)] : Capital Gain on Conversion of Capital Asset into Stock-in-Trade Read More »
Introduction In the world of business and finance, it is not uncommon for companies to convert their stock-in-trade into capital assets. This conversion can have significant implications for the company’s financial statements, tax liabilities, and overall profitability. One important aspect to consider in such conversions is the capital gain that may arise as a result. …
Capital Gain on Conversion of Stock-in-Trade into Capital Asset [Section 28(via)] Read More »
Zero-coupon bonds, also known as deep discount bonds, are fixed-income securities that do not pay periodic interest (coupons) during their term. Instead, they are issued at a discount to their face value and mature at face value. The gain or profit arising from the redemption or maturity of zero-coupon bonds is typically treated as a …
Capital Gain in case of Zero-Coupon Bonds on its Maturity and Redemption Read More »
Section 45(3) of the Indian Income Tax Act, 1961, deals with the taxation of capital gains arising from the transfer of a capital asset by a partner or member to a partnership firm (including an Association of Persons or Body of Individuals) as a capital contribution. Here’s an overview of this provision: Understanding Section 45(3) …
(1) When an asset is acquired by the government through the process of compulsory acquisition, it can have tax implications for the owner. One of the key considerations is the capital gain that may arise from such a transfer. In this blog post, we will explore the provisions under Section 45(5) of the Income Tax …
[Section 45(5)] : Capital Gain on Transfer by way of Compulsory Acquisition of an Asset Read More »
