The document discusses capital gains tax in India. Some key points:
- Profits from the sale of a capital asset are taxed as capital gains and deemed as income in the year the asset is transferred.
- A capital asset is broadly defined as property including both movable and immovable assets, tangible and intangible. Certain assets like stock, personal effects, and agricultural land up to certain limits are excluded.
- Capital assets held for over 36 months are considered long-term, while those held for less than 36 months are short-term. Different tax rates apply to long-term versus short-term capital gains.
- Various transactions like distributions on partition of HUF, gifts, transfers
1. The document discusses various aspects related to capital gains tax in India including understatement of consideration, reference to valuation officers, transfers between partners and firms, family arrangements, computation of capital gains, and short term versus long term capital assets.
2. It explains the powers of assessing officers to refer cases to valuation officers if the stated consideration is lower than fair market value and the consequences if the valuation officer arrives at a higher value.
3. The treatment of various transfers like between partners and firms, conversion of assets, insurance claims, and retirement of partners is explained citing relevant case laws and tax law sections.
This document discusses capital gains tax implications under the Indian tax system. It defines capital assets and notes that profits or gains from transferring a capital asset during the previous year are taxed under capital gains. It distinguishes between short-term capital gains from assets held less than 36 months and long-term capital gains from assets held more than 36 months, noting different tax rates and exemptions apply. The document provides details on calculating capital gains tax liability and available exemptions under sections 54, 54B, 54D, 54EC, 54F, 54G, and 54GA.
This document discusses capital gains tax in India. It defines capital gains as profits arising from the transfer of a capital asset. It outlines the conditions for gains to be classified as capital gains, including that the asset must be transferred. It also defines short-term and long-term capital assets based on the holding period. Several exemptions are provided under sections 54, 54B, 54D, 54EC, 54F, and 54G if the capital gains are reinvested in specified assets within certain time periods.
Capital gains can arise from the transfer of capital assets. Under the Income Tax Act, certain capital gains are fully or partially exempt from taxation if the sale proceeds are invested in specified assets within a prescribed time period. Some of the key exemptions include investments made within 2 years under Section 54 in a new residential house, Section 54B for agricultural land, Section 54D/F for shifting/reestablishing an industrial undertaking, and Section 54EC for specified bonds. Failure to invest in the new asset within the specified time period results in the earlier exempted capital gains becoming taxable in the year of transfer of the new asset.
The document provides an overview of capital gains in India. It defines capital assets and discusses the different types of capital assets and capital gains. It explains that capital gains are taxable if a capital asset is transferred, resulting in a gain. The summary is:
[1] Capital gains arise from the transfer of a capital asset if the sale price is higher than the cost of acquisition and improvements.
[2] Capital assets exclude personal assets and assets held as stock-in-trade.
[3] Gains are classified as short-term or long-term depending on whether the asset was held for less or more than 36 months.
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
1. The document discusses various aspects related to capital gains tax in India including understatement of consideration, reference to valuation officers, transfers between partners and firms, family arrangements, computation of capital gains, and short term versus long term capital assets.
2. It explains the powers of assessing officers to refer cases to valuation officers if the stated consideration is lower than fair market value and the consequences if the valuation officer arrives at a higher value.
3. The treatment of various transfers like between partners and firms, conversion of assets, insurance claims, and retirement of partners is explained citing relevant case laws and tax law sections.
This document discusses capital gains tax implications under the Indian tax system. It defines capital assets and notes that profits or gains from transferring a capital asset during the previous year are taxed under capital gains. It distinguishes between short-term capital gains from assets held less than 36 months and long-term capital gains from assets held more than 36 months, noting different tax rates and exemptions apply. The document provides details on calculating capital gains tax liability and available exemptions under sections 54, 54B, 54D, 54EC, 54F, 54G, and 54GA.
This document discusses capital gains tax in India. It defines capital gains as profits arising from the transfer of a capital asset. It outlines the conditions for gains to be classified as capital gains, including that the asset must be transferred. It also defines short-term and long-term capital assets based on the holding period. Several exemptions are provided under sections 54, 54B, 54D, 54EC, 54F, and 54G if the capital gains are reinvested in specified assets within certain time periods.
Capital gains can arise from the transfer of capital assets. Under the Income Tax Act, certain capital gains are fully or partially exempt from taxation if the sale proceeds are invested in specified assets within a prescribed time period. Some of the key exemptions include investments made within 2 years under Section 54 in a new residential house, Section 54B for agricultural land, Section 54D/F for shifting/reestablishing an industrial undertaking, and Section 54EC for specified bonds. Failure to invest in the new asset within the specified time period results in the earlier exempted capital gains becoming taxable in the year of transfer of the new asset.
The document provides an overview of capital gains in India. It defines capital assets and discusses the different types of capital assets and capital gains. It explains that capital gains are taxable if a capital asset is transferred, resulting in a gain. The summary is:
[1] Capital gains arise from the transfer of a capital asset if the sale price is higher than the cost of acquisition and improvements.
[2] Capital assets exclude personal assets and assets held as stock-in-trade.
[3] Gains are classified as short-term or long-term depending on whether the asset was held for less or more than 36 months.
1) The document discusses the taxation of capital gains in India, including the conditions required for a capital gain to be chargeable, the definitions of capital assets and capital gains, and the computation of capital gains.
2) It provides details on the types of capital assets (short term and long term), the meaning of "transfer", and the different types of capital gains (short term and long term).
3) The computation of capital gains involves subtracting the cost of acquisition and cost of improvements from the full value of consideration, with the costs indexed for inflation in the case of long term capital assets.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
A simple presentation that explains the complex subject of Capital Gains and its taxation in India. Not meant for tax professionals but only for the common man.
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at computation of capital gains in specific cases such as Insurance compensation, Compulsory acquisition, Distribution of Assets, Slump Sale and the provisions in case of sale of Depreciable Assets. We will also look at provisions which provide for full value of consideration in certain cases. Finally, the Webinar will touch upon relevant Judicial Precedents.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar, we will discuss the basics of Capital Gains starting from the Charging Provision. We will understand the meaning of capital asset, meaning of transfer, the types of capital gains, how to compute capital gains and how it arises in specified cases. Finally, the Webinar will touch upon relevant Judicial Precedents.
The document discusses capital gains tax in India. It defines capital assets and excludes certain assets like stock, consumables, personal effects, and agricultural land from the definition. It distinguishes between short-term capital assets held for less than 36 months and long-term capital assets held for more than 36 months. It also lists certain capital gains that are exempt from tax, such as gifts or distributions during a company liquidation. The computation of short-term and long-term capital gains for tax purposes is also summarized.
How capital gain is to be computed when superstructure (building) less than 3...D Murali ☆
How capital gain is to be computed when superstructure (building) less than 3 years old and constructed on an old land owned for more than 3 years is sold - T. N. Pandey - Article published in Business Advisor, dated February 10, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at various types of transfers which are exempted from capital gains, cost of acquisition in certain specified cases, capital gains on specified assets and finally, capital gains in case of non-residents. Also, the Webinar will touch upon relevant Judicial Precedents.
The document provides details about various exemptions available under the Indian Income Tax Act for capital gains. It discusses sections 54, 54B, 54D, 54EC, 54EE, 54F, 54G, 54GA and 54GB which provide exemption from capital gains tax if the amount of capital gains is invested in specified assets within prescribed time limits. Key conditions, timelines and consequences of not meeting the conditions are explained for each section. The document also covers capital gains tax rates and provisions for non-residents.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
This document provides an overview of capital gains taxation in India. It defines key terms like capital asset, short-term capital asset, long-term capital asset, and transfer. It explains the computation of short-term and long-term capital gains, and lists various exemptions available. It also discusses the year of chargeability for capital gains and exceptions like compulsory acquisition. Certain transactions like transfer through gifts or partition of HUF are not regarded as transfers that are taxed. The document concludes with providing the cost inflation index values for different financial years.
This document discusses capital assets and capital gains as per the Indian Income Tax Act of 1961. It defines capital assets and excludes certain assets like stock-in-trade, agricultural land, and specified government bonds. It also describes the different types of capital gains - short term versus long term capital gains depending on the holding period. Some key exemptions for capital gains tax are discussed, like exemption of gains from transfer of a residential house if another house is purchased. Capital gains in the context of DTAAs and for NRIs are also summarized briefly.
This document discusses the taxation of capital gains in India under the Income Tax Act of 1961. It defines capital assets and differentiates between short-term and long-term capital assets. Gains from the transfer of short-term capital assets are taxed at normal tax rates, while long-term capital gains are taxed at concessional rates. There are various exemptions available for capital gains reinvested in residential houses, agricultural land, specified bonds, shifting of industrial undertakings, and more. The document provides details on computation of capital gains and applicable tax rates for different types of taxpayers.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation of 'Profits and gains of business or profession' (PGBP). In this Webinar, we shall look at the charging section for PGBP and provisions relating to computation of PGBP, admissible deductions and allowances including Depreciation.
Here are the key steps to solve this problem:
1) Find the indexed cost of acquisition by multiplying the actual cost with the cost inflation index of the year of sale and dividing it by the cost inflation index of the year of purchase.
2) Find the indexed cost of improvements by multiplying the actual cost of each improvement with the cost inflation index of the year of sale and dividing it by the cost inflation index of the respective year of improvement.
3) Add the indexed costs of acquisition and improvements.
4) Deduct the total indexed cost from the sale consideration to arrive at the long term capital gains.
The document summarizes various capital gains tax exemptions available under the Income Tax Act of India. Section 10 allows exemptions for specified assessees like local authorities or research institutions. Sections 54, 54EC, and 54F provide exemptions for individuals/HUFs if the capital gains are reinvested in purchasing a new residential house, bonds of specified institutions, or another residential house respectively. The exemptions are available if the conditions regarding timelines for purchase or construction and holding period of the new asset are met.
The document discusses capital gains tax under section 45(1) of the Income Tax Act. Some key points include:
1) Capital gains arising from the transfer of a capital asset are taxable as capital gains in the year the transfer takes place.
2) Certain assets like personal household items are not considered capital assets, while others like jewelry, paintings, and cars used for business are.
3) Transfer includes sale, exchange, relinquishment of an asset, or conversion to stock-in-trade. It is taxed in the year of transfer, except for compulsory acquisition or insurance claims, which are taxed in the year compensation is received.
4) Capital gains are classified as short
The document discusses the meaning and calculation of capital gains under the Income Tax Act.
Some key points:
- Capital gains arise from the profit earned on the transfer of a capital asset like property, shares, etc.
- It is taxed under a separate head called "capital gains" and is deemed as income of the year in which the transfer took place.
- Capital gains are classified as short-term or long-term depending on the period of holding. Assets held for less than 36 months for immovable property and 12 months for others attract short-term capital gains tax.
- The capital gain amount is calculated by deducting the indexed cost of acquisition and improvement from the sale consideration. Various
The document discusses various sections of the Indian Income Tax Act that provide exemptions on capital gains arising from the transfer of residential house property, agricultural land, and other capital assets. Section 54 provides exemption on long-term capital gains from transfer of a residential house if another house is purchased within 2 years. Section 54B provides similar exemption for transfer of agricultural land. Section 54EC allows exemption if the capital gains are invested in specified bonds within 6 months. The exemptions are subject to conditions like reinvestment of the capital gains amount within the prescribed time periods.
This document discusses taxation of capital gains in India. It defines short-term and long-term capital assets as those held for less than 36 months and more than 36 months respectively. It outlines what is considered a capital gain and how short-term and long-term capital gains are taxed differently. Specifically, it notes that short-term capital gains are added to one's income and taxed accordingly, while long-term capital gains are taxed at a lower rate after indexing the cost of acquisition and improvement for inflation. The document also lists some capital gains that are exempted from taxation.
The document outlines a 7-step program to help individuals build their career as if it were a business called "You, Inc.". The program helps participants understand their personal values, develop a vision and mission, understand their skills and brand, create a strategic career plan, identify barriers, and build their career business. The document also provides information about Success Rockets LLC, the company that created the You, Inc. program to help clients adapt to a changing workplace by understanding their strengths and values.
Warren Buffett, the second richest man in the world who has donated $31 billion to charity, was interviewed for one hour on CNBC. Some interesting aspects about his life are that he bought his first stock at age 11, still lives in the same small house he bought over 50 years ago, and gives simple rules and goals to the CEOs of his 63 companies without regular meetings or calls. His advice is to avoid debt, invest in yourself, appreciate what you have, and choose a simple life.
A simple presentation that explains the complex subject of Capital Gains and its taxation in India. Not meant for tax professionals but only for the common man.
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at computation of capital gains in specific cases such as Insurance compensation, Compulsory acquisition, Distribution of Assets, Slump Sale and the provisions in case of sale of Depreciable Assets. We will also look at provisions which provide for full value of consideration in certain cases. Finally, the Webinar will touch upon relevant Judicial Precedents.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar, we will discuss the basics of Capital Gains starting from the Charging Provision. We will understand the meaning of capital asset, meaning of transfer, the types of capital gains, how to compute capital gains and how it arises in specified cases. Finally, the Webinar will touch upon relevant Judicial Precedents.
The document discusses capital gains tax in India. It defines capital assets and excludes certain assets like stock, consumables, personal effects, and agricultural land from the definition. It distinguishes between short-term capital assets held for less than 36 months and long-term capital assets held for more than 36 months. It also lists certain capital gains that are exempt from tax, such as gifts or distributions during a company liquidation. The computation of short-term and long-term capital gains for tax purposes is also summarized.
How capital gain is to be computed when superstructure (building) less than 3...D Murali ☆
How capital gain is to be computed when superstructure (building) less than 3 years old and constructed on an old land owned for more than 3 years is sold - T. N. Pandey - Article published in Business Advisor, dated February 10, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation and chargeability of Capital Gains. In this Webinar we shall look at various types of transfers which are exempted from capital gains, cost of acquisition in certain specified cases, capital gains on specified assets and finally, capital gains in case of non-residents. Also, the Webinar will touch upon relevant Judicial Precedents.
The document provides details about various exemptions available under the Indian Income Tax Act for capital gains. It discusses sections 54, 54B, 54D, 54EC, 54EE, 54F, 54G, 54GA and 54GB which provide exemption from capital gains tax if the amount of capital gains is invested in specified assets within prescribed time limits. Key conditions, timelines and consequences of not meeting the conditions are explained for each section. The document also covers capital gains tax rates and provisions for non-residents.
Income Tax Act 1961
Capital Gain, Basis of Charge, Capital Asset U/s 2(14) Income Tax Act, Transactions that do not constitute TRANSFER U/s 47, Types of Capital Assets, Computation of STCG, Computation of LTCG, Tax Exemption for Capital Gain.
This document provides an overview of capital gains taxation in India. It defines key terms like capital asset, short-term capital asset, long-term capital asset, and transfer. It explains the computation of short-term and long-term capital gains, and lists various exemptions available. It also discusses the year of chargeability for capital gains and exceptions like compulsory acquisition. Certain transactions like transfer through gifts or partition of HUF are not regarded as transfers that are taxed. The document concludes with providing the cost inflation index values for different financial years.
This document discusses capital assets and capital gains as per the Indian Income Tax Act of 1961. It defines capital assets and excludes certain assets like stock-in-trade, agricultural land, and specified government bonds. It also describes the different types of capital gains - short term versus long term capital gains depending on the holding period. Some key exemptions for capital gains tax are discussed, like exemption of gains from transfer of a residential house if another house is purchased. Capital gains in the context of DTAAs and for NRIs are also summarized briefly.
This document discusses the taxation of capital gains in India under the Income Tax Act of 1961. It defines capital assets and differentiates between short-term and long-term capital assets. Gains from the transfer of short-term capital assets are taxed at normal tax rates, while long-term capital gains are taxed at concessional rates. There are various exemptions available for capital gains reinvested in residential houses, agricultural land, specified bonds, shifting of industrial undertakings, and more. The document provides details on computation of capital gains and applicable tax rates for different types of taxpayers.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to computation of 'Profits and gains of business or profession' (PGBP). In this Webinar, we shall look at the charging section for PGBP and provisions relating to computation of PGBP, admissible deductions and allowances including Depreciation.
Here are the key steps to solve this problem:
1) Find the indexed cost of acquisition by multiplying the actual cost with the cost inflation index of the year of sale and dividing it by the cost inflation index of the year of purchase.
2) Find the indexed cost of improvements by multiplying the actual cost of each improvement with the cost inflation index of the year of sale and dividing it by the cost inflation index of the respective year of improvement.
3) Add the indexed costs of acquisition and improvements.
4) Deduct the total indexed cost from the sale consideration to arrive at the long term capital gains.
The document summarizes various capital gains tax exemptions available under the Income Tax Act of India. Section 10 allows exemptions for specified assessees like local authorities or research institutions. Sections 54, 54EC, and 54F provide exemptions for individuals/HUFs if the capital gains are reinvested in purchasing a new residential house, bonds of specified institutions, or another residential house respectively. The exemptions are available if the conditions regarding timelines for purchase or construction and holding period of the new asset are met.
The document discusses capital gains tax under section 45(1) of the Income Tax Act. Some key points include:
1) Capital gains arising from the transfer of a capital asset are taxable as capital gains in the year the transfer takes place.
2) Certain assets like personal household items are not considered capital assets, while others like jewelry, paintings, and cars used for business are.
3) Transfer includes sale, exchange, relinquishment of an asset, or conversion to stock-in-trade. It is taxed in the year of transfer, except for compulsory acquisition or insurance claims, which are taxed in the year compensation is received.
4) Capital gains are classified as short
The document discusses the meaning and calculation of capital gains under the Income Tax Act.
Some key points:
- Capital gains arise from the profit earned on the transfer of a capital asset like property, shares, etc.
- It is taxed under a separate head called "capital gains" and is deemed as income of the year in which the transfer took place.
- Capital gains are classified as short-term or long-term depending on the period of holding. Assets held for less than 36 months for immovable property and 12 months for others attract short-term capital gains tax.
- The capital gain amount is calculated by deducting the indexed cost of acquisition and improvement from the sale consideration. Various
The document discusses various sections of the Indian Income Tax Act that provide exemptions on capital gains arising from the transfer of residential house property, agricultural land, and other capital assets. Section 54 provides exemption on long-term capital gains from transfer of a residential house if another house is purchased within 2 years. Section 54B provides similar exemption for transfer of agricultural land. Section 54EC allows exemption if the capital gains are invested in specified bonds within 6 months. The exemptions are subject to conditions like reinvestment of the capital gains amount within the prescribed time periods.
This document discusses taxation of capital gains in India. It defines short-term and long-term capital assets as those held for less than 36 months and more than 36 months respectively. It outlines what is considered a capital gain and how short-term and long-term capital gains are taxed differently. Specifically, it notes that short-term capital gains are added to one's income and taxed accordingly, while long-term capital gains are taxed at a lower rate after indexing the cost of acquisition and improvement for inflation. The document also lists some capital gains that are exempted from taxation.
The document outlines a 7-step program to help individuals build their career as if it were a business called "You, Inc.". The program helps participants understand their personal values, develop a vision and mission, understand their skills and brand, create a strategic career plan, identify barriers, and build their career business. The document also provides information about Success Rockets LLC, the company that created the You, Inc. program to help clients adapt to a changing workplace by understanding their strengths and values.
Warren Buffett, the second richest man in the world who has donated $31 billion to charity, was interviewed for one hour on CNBC. Some interesting aspects about his life are that he bought his first stock at age 11, still lives in the same small house he bought over 50 years ago, and gives simple rules and goals to the CEOs of his 63 companies without regular meetings or calls. His advice is to avoid debt, invest in yourself, appreciate what you have, and choose a simple life.
Individual Effectiveness and Career SuccessZsuzsanna Vida
Identify career path preferences, how to be more effective in communication, improve work-relationships, discover need for change and its career implications, leadership potential and development needs, etc. Your motivational patterns are the key to individual effectiveness and your career success.
The document discusses how few people are able to truly conquer hearts and gain widespread admiration. It notes that Dr. A.P.J. Abdul Kalam founded the ARISE Training & Research Center, which is mentioned repeatedly. The center seems focused on helping people achieve their dreams.
Warren Buffett, the world's second richest man who has donated $31 billion to charity, was interviewed for one hour on CNBC. Some interesting aspects of his life are that he bought his first stock at age 11, still lives in the same modest house he purchased over 50 years ago, and drives himself instead of using a private jet or having a security detail. His advice is to avoid debt, invest in yourself through education, follow your passions over brand names or peer pressure, and appreciate what you have rather than constantly seeking more.
- Income from house property is taxed on a notional basis and includes any building with characteristic features of a building such as residential buildings or cinemas.
- For a property to be considered under the head house property, it must be owned by the assessee and not used for their own business or profession.
- The annual value of a property is its expected rental income and may be taken as actual rent received in some cases, with exceptions for vacant properties.
Income From House Property New 2008 09 Assessment YearAugustin Bangalore
This document provides an overview of income from house property under the Indian Income Tax Act. Some key points covered include:
1. Income from house property is taxed based on the notional annual rental value of the property, whether rented or self-occupied.
2. For a property to be classified as a house property, it must have characteristics of a building and be owned by the assessee. Income from sub-let properties falls under 'income from other sources'.
3. Interest paid on loans for house property is deductible. Even if the net annual value is negative, interest paid can still be deducted.
Nick Vujicic-No arms, No legs, No worries...Mukesh Bhavsar
Nicholas Vujicic is a motivational speaker born in 1982 in Australia without limbs. He struggled with depression as a child but found purpose through his Christian faith. Despite having no arms or legs, he lives independently and has traveled to over 24 countries to share his story of overcoming obstacles through a positive attitude.
Capital gains arising from the transfer of a capital asset during the previous year are chargeable to tax. For an asset to be considered a capital asset, there must be a transfer by the assessee, the asset must have been held for the required period of time (short-term or long-term), and any profit or gains must have arisen from the transfer. Certain assets and transfers are exempt from capital gains tax. The computation of capital gains involves determining the full value of consideration, cost of acquisition, and cost of improvements to arrive at the capital gains amount.
The document discusses tax aspects and incentives related to mergers, acquisitions, amalgamations, and demergers in India.
[1] It defines amalgamation under Indian tax law as the merger of one or more companies with another company, or the merger of two or more companies to form one company, where at least 90% of shareholders of the amalgamating companies become shareholders of the amalgamated company.
[2] It outlines various tax concessions for amalgamating companies, shareholders of amalgamating companies, and amalgamated companies. This includes exempting asset transfers, share transfers, and carrying forward losses.
[3] It similarly defines and discusses tax treatment for demergers, including exempting asset
The document discusses capital gains tax in India. Some key points:
1) Capital gains are profits arising from the transfer of a capital asset like property, shares, etc. during a year. It is taxed under the head "capital gains".
2) A capital asset is anything held by a taxpayer, whether fixed/circulating, movable/immovable. Some exceptions include stock, personal assets, agricultural land.
3) The transfer of a capital asset includes its sale, relinquishment, conversion to stock, or other transactions.
4) Capital gains are classified as short-term or long-term based on the holding period of the asset. Short-term gains are taxed at normal
Capital gains tax is charged on profits arising from the transfer of a capital asset during the previous year. For an asset to be considered a capital asset, it must meet the definition in Section 2(14) of the Income Tax Act which includes a positive and negative list. Capital assets are classified as short-term or long-term depending on the holding period, and the tax treatment differs between these two classifications. When computing capital gains, the full value of consideration is reduced by expenses on transfer, cost of acquisition, and cost of improvement to arrive at the capital gains amount.
This document discusses capital gains tax and amendments under Indian tax law. Some key points:
- Capital gains arising from the transfer of a capital asset are taxed under the "Capital gains" head of income and deemed as income of the previous year when the transfer took place.
- Certain situations like money received from insurance for damaged capital assets or conversion of capital assets to stock are also deemed as capital gains of the previous year.
- The profits from transfer of capital assets to firms/AOPs as capital contribution or on dissolution are also taxed as capital gains income of the previous year.
- Computation of capital gains involves deducting expenditure and cost of acquisition from the full value received for the
For income to be classified under the head "Profits and Gains of Business," three conditions must be met: 1) there must be a business or profession, 2) the business must be carried out by the assessee, and 3) the business must have been carried out during the previous year. Income that would be charged under this head includes profits from business/profession, compensation related to termination of certain management roles, income from professional associations, export incentives, and more. Interest income may be considered business income if it was derived from business activities, or income from other sources if incidental to the business. Several deductions are allowed when computing income from this head, including insurance premiums, employee bonuses/comm
This document summarizes key provisions around capital gains tax in India. Some key points:
- Capital gains arising from the transfer of a capital asset are taxed under the head "Capital gains" and deemed as income for the year the transfer took place.
- Certain transfers like conversion of capital assets to stock-in-trade, transfer to firms/AOPs on becoming a partner, distribution of capital assets on firm dissolution, are also deemed as capital gains for tax purposes.
- The capital gains are computed by deducting the indexed cost of acquisition and improvements from the full value of consideration received.
- Special rules apply for determining the cost of acquisition for assets received by way of gift, inheritance
The document summarizes key provisions related to capital gains tax in India. Some key points:
- Capital gains arising from the transfer of a capital asset are taxed under the head "Capital gains" and deemed as income for the year the transfer took place.
- The capital gains are calculated by deducting the indexed cost of acquisition and improvements from the full value of consideration received.
- Special provisions exist for types of asset transfers like conversion of capital asset into stock-in-trade, transfers to partners/firms, distributions on liquidation, etc.
- Certain transactions like partition of HUF, gifts, amalgamation schemes are not regarded as transfers for capital gains tax.
- Any capital gains arising from the transfer of a capital asset during an assessment year is chargeable to capital gains tax in the immediately following assessment year, unless exempt.
- For capital gains tax to apply, there must be a capital asset, it must be transferred by the assessee, the transfer must occur during the relevant year, and any profit or gains must arise from the transfer.
- Certain assets are excluded from the definition of capital assets, including certain personal assets and government securities. Capital assets are classified as short-term or long-term based on the period of holding, with different tax rates and exemptions applying.
The document proposes several changes to tax laws regarding amalgamation, demerger, and slump sales of business undertakings between companies. For amalgamation, it proposes relaxing the shareholder approval requirement from 90% to 75% value of shares. For demerger, it proposes defining demerger and making it tax neutral subject to certain conditions. It also proposes tax treatment for transfers of various assets and costs like losses, depreciation, R&D expenditure in amalgamation and demerger. For slump sales, it proposes treating gains above 36 months as long term capital gains taxed at 20% versus normal rates for shorter periods.
The document summarizes the evolution of SEBI's Takeover Code regulations in India from 1994 to 2011. It provides key definitions related to acquisitions and control under the regulations. The purpose of the Takeover Code is to ensure fair exit opportunities for shareholders and fair disclosure regarding changes in shareholding and control of companies. The regulations govern direct and indirect acquisitions of shares and control in listed companies. They specify requirements for public announcements, open offers, offer size, price and exemptions. Key aspects include minimum offer sizes, methods for determining offer price, disclosure obligations, and exemptions for inter-se promoter transfers and other specified cases.
The document discusses various provisions related to capital gains under the Income Tax Act. It defines capital asset and distinguishes between short term and long term capital assets. It provides details on the computation of capital gains, cost of acquisition, transfer provisions, exemptions available for reinvestment of capital gains in specified assets within prescribed time limits under various sections like 54, 54B, 54D, 54EC and 54F. It also discusses special provisions for full value of consideration in case of transfers of land/building where stamp duty value is different than sale consideration.
This document provides information on capital gains tax provisions in India. It defines key terms like business, profession, capital asset and discusses the classification of capital assets as short-term or long-term. It also summarizes the methods of computing capital gains, including the use of indexation for long-term capital gains. The document outlines various transactions that are exempt from capital gains tax, such as transfers via gifts or to certain institutions. It provides details on tax exemptions for reinvesting capital gains within a prescribed period.
This document discusses capital gains tax in India. It defines capital gains as any profit arising from the transfer of a capital asset. It distinguishes between short-term and long-term capital assets based on the holding period, and discusses the different types of capital gains (short-term, long-term). It also covers topics like calculation of capital gains, indexed cost of acquisition and improvement, exemptions for reinvestment of capital gains in residential houses or specified assets, and the capital gains deposit scheme.
The document discusses capital gains tax in India. It defines capital gains as profits arising from the transfer of a capital asset. It distinguishes between short-term and long-term capital gains based on the holding period of the asset. It provides details on calculating capital gains, including determining the full value of consideration, deducting costs, and indexing costs for long-term capital assets. It also outlines various deductions that can be claimed against capital gains under sections like 54, 54B, 54D, and 54EC.
The document summarizes the principal terms of a Series A Preferred Stock financing for Mobile Mountain, Inc. Key terms include Mobile Capital Partners investing up to $500,000 with a goal of raising $1.5 million total. The pre-money valuation is $1.5 million and the stock is priced at $X per share. The financing includes standard rights for investors such as liquidation preferences, anti-dilution protections, and registration rights. The document also outlines the capitalization structure, board composition, and other investment details.
1) The document discusses capital gains tax and definitions related to capital assets in India.
2) It defines capital asset, short term capital asset, long term capital asset, and transfer as it relates to capital gains.
3) Key aspects covered include the periods of holding required for an asset to be considered short term or long term, and transactions that are considered "transfers" which can trigger a capital gains tax.
Capital Gain Tax Liability jjljljljljljlBarnabasJoy1
Capital gains tax is levied on profits from the sale of capital assets. There must be a capital asset that is transferred, resulting in a gain. Assets are classified as short-term (held 36 months or less) or long-term. Gains from long-term assets face lower tax rates (20%) than short-term (15%). Some capital gains are exempt, such as from the primary residence if another home is purchased, agricultural land replaced, or compulsory land acquisitions for industry.
The document discusses various methods for funding investments in joint ventures (JVs) and wholly owned subsidiaries (WOS) abroad by Indian companies. It outlines that investments can be funded through foreign exchange reserves, export proceeds, equity swaps, external commercial borrowings, depository receipts, and balances in exchange earners' foreign currency accounts. The capitalization of export proceeds and other dues to invest in overseas JVs/WOS within prescribed timelines is also permitted. Indian companies can invest in overseas equities and rated debt instruments up to a certain percentage of their net worth. The acquisition of a foreign company through a bidding process is also discussed.
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Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
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In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
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2. CHARGEABILITY:
[SEC.45]
Any profit or gain arising from the sale
or transfer of a capital asset is
chargeable to tax under the head
capital gains.
It is deemed to be the income of the
previous year in which the transfer of
the capital asset takes place.
Capital gains arising on the transfer of
immovable property are chargeable to
tax in the previous year,in which the
effective transfer of title is conveyed or
registered.
4. The following assets are,however excluded from the
definition from capital asset:
Stock in trade,consumable stores or raw materials held for
the purpose of business.
Personal effects of the assessee (but doesn’t include
jewellary,archaeological
collections,drawings,paintings,sculptures or any work of
art).
Agricultural land in india provided it is not situated –
o In any area within jurisdiction of a municipality or a
contonment board having a population of 10,000 or
more; or
o In any notified area;
6.5%gold bonds1977 or 7% gold bonds,1980 or national
defence gold bonds issued by central govt .
Special bearer bonds,1991;and
Gold deposit bonds issued under the gold deposit scheme.
6. SHORT TERM AND LONG TERM
CAPITAL ASSETS
“Short term capital assets” means a capital asset held by
the assessee for not more than 36 months, immediately
prior to its date of transfer. However, the following assets
are treated as short term assets if they are held for not
more than 12 months, they are:
Equity or preference shares in a company.
Securities like debentures, government securities listed in a
recognized stock exchange in India.
Units of UTI and
Units of mutual funds.
An asset other than a short-term capital asset is regarded
as a “long term capital asset”.
7. SHORT TERM CAPITAL
GAIN
LONG TERM CAPITAL
GAIN
1)Find full value of
consideration
2)Deduct the followings.
a) Expenditure incurred
wholly and exclusively in
connection with such
transfer.
b) Cost of acquisition.
c) Cost of improvement
3) From resulting sum deduct
exemption provided by
u/s54 B, 54 D, 54 G, 54GA
4) The balancing amount is
Short Term Capital Gain.
1) Find full value of
consideration
2) Deduct the followings
a) Expenditure incurred
wholly and exclusively in
connection with such
transfer.
b) Indexed Cost of acquisition.
c) Indexed Cost of
improvement.
3) From resulting sum deduct
the exemption provided by
section 54, 54 B, 54 D,
54 EC, 54 F, 54 G, 54 GA
4) The balancing amount is
Long Term Capital Gain/Loss.
8. Transfer 2(47) includes:
Sale;
Exchange;
Relinquishment of right;(sale of rights to
buy right shares);
Extinguishment of asset;(buy back of
shares);
Compulsory acquisition;
Maturity or redemption of zero coupon
bonds(w.e.f a.y2006-07)
In a case where the asset is converted by the
owner thereof into, or is treated by him as, stockin-trade of a business carried on by him, such
conversion or treatment.
9. Deemed transfer:
But in case of immovable property (u/s 53A of
transfer of property act,it shall be deemed to
be transfer when)There is a contract for consideration
It should be in writing
It should be signed by the transferor
Should pertain to transfer of immovable
property
Transferee should have taken possession
Transferee should be ready& willing to
perform the contract
Any transaction which has the effect of
transferring the enjoyment of,any immovable
property(member of a co-ooperative society)
10. Transactions not included in
transfer:[SEC 47]
Any distribution of capital assets on the total or
partial partition of a HUF.
Any transfer of a capital asset under a gift or
will or an irrevocable trust.(not applicable for
shares,debentures or warrants by a company to
its employees)
Distribution of assets in kind by a company to
its shareholders on its liquidation
Any transfer of a capital asset by a company to
its wholly owned Indian subsidiary company.
Any transfer of a capital asset by a wholly
owned Indian subsidiary company to its Indian
holding company .
11. Any transfer in a scheme of amalgamation
of a capital asset by a amalgamating
company to the amalgamated company,if
the latter company is an Indian company.
Any transfer in scheme of amalgamation
of a banking company with a banking
institution.
Any transfer in a demerger of a capital
asset by the demerged company to
resulting company provided that
resulting company is an Indian company.
12. Any transfer of shares held in an indian
companyby demerged foreign company
to the resulting foreign company if :
The shareholders holding not less than threefourth in value of the shares of the demerged
foreign company continue to remain
shareholders of the resulting foreign
company;and
Such transfer doesnot attract capital gains in
the country,in which the demerged foreign
company is incorporated.
13. Any transfer, in a scheme of
amalgamation of a capital asset being a
share held in an Indian company, by
the amalgamating foreign company to
the amalgamated foreign company, ifAt least twenty-five per cent of the
shareholders of the amalgamating foreign
company continue to remain shareholders
of the amalgamated foreign company, and
•
Such transfer does not attract tax on
capital gains in the country, in which the
amalgamating company is incorporated.
•
14. Any transfer in a
business reorganisation, of a capital
asset by the predecessor co-operative
bank to the successor co-operative
bank.
Any transfer by a shareholder, in a
business reorganisation, of a capital
asset being a share or shares held by
him in the predecessor if the transfer
is made in consideration of the
allotment to him of any share or shares
in the successor .
15. Any transfer or issue of shares by the
resulting company, in a scheme of demerger to
the shareholders of the demerged company if
the transfer or issue is made in consideration
of demerger of the undertaking.
Any transfer by a shareholder, in a scheme
of amalgamation, of a capital asset being a
share or shares held by him in the
amalgamating company, if—
• The transfer is made in consideration of the
allotment to him of any share or shares in the
amalgamated company, and
• The amalgamated company is an Indian company.
16. Any transfer of a capital asset, being bonds
or Global Depository Receipts referred to
in sub-section (1) of section 115C, made
outside India by a non-resident to another
non-resident.
Any transfer of agricultural land
in India effected before 1/03/1970.
Any transfer by way of conversion
of bonds or debentures, debenture-stock
or deposit certificates in any form, of a
company into shares or debentures of that
company.
17. Any transfer of a capital asset, being
any work of art, archaeological,
scientific or art collection, book,
manuscript, drawing, painting,
photograph or print, to the
Government or a University or the
National Museum, National Art
Gallery, National Archives or any such
other public museum or institution as
may be notified by the C.G in the
Official Gazette to be of national
importance or to be of renown
throughout any State or States.
18. Any transfer by way of conversion of
bonds referred to in clause (a) of subsection (1) of section 115AC into
shares or debentures of any company.
Any transfer made on or before the
31/12/1998 by a person (not being a
company) of a capital asset being
membership of a recognised stock
exchange to a company in exchange of
shares allotted by that company to the
transferor.
19. Any transfer of a capital asset, being
land of a sick industrial company, made
under a scheme prepared and
sanctioned under section 18 of the Sick
Industrial Companies Act, 1985 where
such sick industrial company is being
managed by its workers’ co-operative
•
Provided that such transfer is made during the
period commencing from the previous year in which the
said company has become a sick industrial company
under sub-section (1) of section17 of that Act and
ending with the previous year during which the entire
net worth of such company becomes equal to or exceeds
the accumulated losses.
20.
Any transfer of a capital asset or intangible asset by a firm to a
company as a result of succession of the firm by a company in the
business carried on by the firm, or any transfer of a capital asset to a
company in the course of demutualisation or corporatisation of
a recognised stock exchange in India as a result of which an
association of persons or body of individuals is succeeded by such
company :
•
•
•
•
Provided that—
All the assets and liabilities of the firm or of the association
of persons or body of individuals relating to the business
immediately before the succession become the assets and
liabilities of the company;
All the partners of the firm immediately before the
succession become the shareholders of the company in the same
proportion in which their capital accounts stood in the books
of the firm on the date of the succession;
The partners of the firm do not receive any consideration or
benefit, directly or indirectly, in any form or manner, other
than by way of allotment of shares in the company; and
The aggregate of the shareholding in the company of the
partners of the firm is not less than fifty per cent of the total
voting power in the company and their shareholding continues
to be as such for a period of five years from the date of the
succession
21.
Any transfer of a capital asset or intangible asset by a private company or
unlisted public company to a limited liability partnership or any transfer of a
share or shares held in the company by a shareholder as a result of conversion
of the company into a limited liability partnership in accordance with the
provisions of section 56 or section 57 of the Limited Liability Partnership Act,
2008 :
Provided that—
•
All the assets and liabilities of the company immediately before the
conversion become the assets and liabilities of the limited liability partnership;
•
All the shareholders of the company immediately before the conversion
become the partners of the limited liability partnership and their capital
contribution and profit sharing ratio in the limited liability partnership are in
the same proportion as their shareholding in the company on the date of
conversion;
•
The shareholders of the company do not receive any consideration or
benefit, directly or indirectly, in any form or manner, other than by way of
share in profit and capital contribution in the limited liability partnership;
•
The aggregate of the profit sharing ratio of the shareholders of the company
in the limited liability partnership shall not be less than fifty per cent at any
time during the period of five years from the date of conversion;
•
The total sales, turnover or gross receipts in the business of the company in
any of the three previous years preceding the previous year in which the
conversion takes place does not exceed sixty lakh rupees; and
•
No amount is paid, either directly or indirectly, to any partner out of
balance of accumulated profit standing in the accounts of the company on the
date of conversion for a period of three years from the date of conversion.
22.
Where a sole proprietary concern is succeeded by a
company in the business carried on by it as a result
of which the sole proprietary concern sells or
otherwise transfers any capital asset or intangible
asset to the company :
Provided that—
All the assets and liabilities of the sole proprietary
concern relating to the business immediately before the
succession become the assets and liabilities of the
company;
•
The shareholding of the sole proprietor in the company
is not less than fifty per cent of the total voting power in
the company and his shareholding continues to remain as
such for a period of five years from the date of the
succession; and
•
The sole proprietor does not receive any consideration
or benefit, directly or indirectly, in any form or
manner, other than by way of allotment of shares in the
company;
•
23. Any transfer in a scheme for lending of
any securities under an agreement or
arrangement, which the assessee has
entered into with the borrower of such
securities and which is subject to the
guidelines issued by the SEBI w.e.f
a.y1999-2000 & from 2003-04 RBI.
Any transfer of a capital asset in a
transaction of reverse mortgage under
a scheme made and notified by the
Central Government.
24. PROVISIONS OF SEC 112
Section 112 provides an alternative option
for charging long term capital gains to tax, if
the following conditions are satisfied :
•
•
•
The taxpayer is an individual, HUF, company or any
other person(may be resident or non resident)
The asset is a long term capital asset
The long term capital asset is
- a security listed in any recognised stock exchange in
India or,
- a unit of UTI or a mutual fund(whether listed or not)
25. If the conditions are satisfied, then the other
option is to charge the capital gains at the rate
of 10% without taking the benefit of indexation
in the cost of acquisition.
The tax payable by the assessee will be lower of
20%(+ surcharge)on the capital gain calculated
giving benefit of indexation or @10% without
the benefit of indexation, whichever is lower.
In the case of listed bonus shares, listed
debentures and listed bonds, Option u/s 112 will
be better.
Long term capital gains can avail the unavailed
basic exemption limit.
26. Insurance claim:
Capital asset destroyed in fire
Insurance claim received against the
destruction of the said asset
Whether insurance claim liable to
tax as capital gains ?
Vania Silk Mills (1991) 191 ITR 647
(SC)
Section 45(1A) inserted wef 1-4-2000
27. Section 45(1A)
Profit or gains arising from
receipt of money or other asset from an
insurer on account of damage or
destruction of Capital Asset shall be
deemed to be income & chargeable to
tax under the head Capital Gains.
Money received or Fair
Market Value of the asset received shall
be treated as the Full Value of
consideration in the year of receipt.
28. Conversion of capital asset into stock
in trade [Section 45(2)]:
Fair Market Value of the asset on the
date of conversion to be deemed to be
full value of consideration.
Capital Gains deemed to be income of
the year in which such stock in trade is
sold.
In such a case both capital gains and
business income arises.
29. Transfer of security in demat
form sec 45(2A)
It is applicable when shares are
transferred in demat form.
Beneficial owner of shares/securities
is chargeable to tax.
For computing capital gain,cost of
acquisition and period of holding of
any security shall be determined on
the basis of first-in-first-out
method(FIFO).
30. Transfer by Partner to the Firm
[Section 45(3)]:
Transfer of capital assets by partner to
the firm as capital contribution or
otherwise.
Amount recorded in the books of
accounts of the firm to be treated as
full value of the consideration.
Capital Gains taxable accordingly.
31. Transfer by Firm to the Partner
[Section 45(4)]:
Transfer by firm to the partner by way of
distribution of capital asset on dissolution
of firm or otherwise shall be chargeable to
tax in the hands of the firm.
Fair Market Value of the asset to be
deemed to be the full value of
consideration.
32. Compulsory acquisition 45(5):
Transfer of asset is by way of
compulsory acquisition under any
law.
Consideration is approved or
determined by central govt or RBI.
Year of chargeability: year in which
compensation is received.
Indexation facility is available till
the year of acquisition.
33. Enhanced compensation
It is taxable in the year of receipt.
Cost of acquisition is taken as nil.
Litigation expenses incurred for
getting the enhanced compensation
are deductible as expenses on
transfer.