Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Capital Gains

Income under the Head “Capital Gains” [Section 45 to 55A]

Summarized Table – Cost of Acquisition of Capital Assets

SL No. Type of Capital Asset Cost of acquisition to the assessee Relevant section applicable I. Goodwill of a business, trademark or brand name associated with a business, right to manufacture or produce or process any article or thing or right to carry on any business or profession or tenancy rights, state carriage permits or …

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Capital Gains under Income Tax Act. 1961 – LTCG & STCG

Cost of acquisition is the price which the Assessee 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 for acquiring capital assets will form part of cost of asset:  (1)          …

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Capital Gains under Income Tax Act. 1961 – LTCG & STCG

1.   Basis of Charge – Capital Gains [Section 45(1)] 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 …

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[ Section 46 and 47]- Transactions Not regarded as Transfer for purposes of Capital Gains

In many transactions although there is a transfer, but these are not considered to be transfer for purposes of Capital Gains. Some relevant transactions which are not regarded as Transfer are : 1.     where the assets of a company are distributed to its shareholders on liquidation of a company. such distribution shall not be …

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Computation of Capital Gains in different Cases

1.   Computation of ‘Capital Gain’ in case of ‘Zero Coupon Bonds’ The profits arising on the transfer of such zero coupon bond shall be chargeable under the head “capital gains”. Further, if such zero coupon bonds are held for not more than 12 months, such capital asset shall be treated as short- term capital asset …

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Exemption of Capital Gains under Sections 54, 54B, 54D, 54EC, 54EE, 54F, 54G. 54GA and 54GB

1.   [Section 54]- Exemption of Capital Gain on Transfer of House Property used for Residence Capital gain arising on the transfer of a residential house is exempt u/s 54 in the following circumstances: (i)            the asset transferred is a residential house, the income of which is chargeable under the head “income from house property”; (ii) …

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