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.
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.
Helps the student to know about the Agricultural Income in Indian Income tax Act 1961 and also how the Tax Liability will be calculated when an Assessee have both Agricultural and Non Agricultural Income
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.
Helps the student to know about the Agricultural Income in Indian Income tax Act 1961 and also how the Tax Liability will be calculated when an Assessee have both Agricultural and Non Agricultural Income
Every assessee earning more than the basic exemption are eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilemt of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which are essential for Individuals, HUF and Firms for the purpose of claiming deductions against their total income.
Every assessee earning more than the basic exemption are eligible to seek deduction from Gross Total Income by way of deductions allowed for investments or payments made, under Chapter VI-A of the Income Tax Act. Chapter VI-A helps an assessee to reduce the overall tax burden to the extent of investment and expenses made within the ambit of law and fulfilemt of prescribed conditions. In this Webinar, we shall be focusing on the provisions of Chapter VI-A which are essential for Individuals, HUF and Firms for the purpose of claiming deductions against their total income.
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.
CAPITAL GAINS some basic provisions are provided. Except for exemption u/s 54/ Useful for B.Com or M.com Students. Provisions related are for AY 2014-15
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
2. INTRODUCTION
CAPITAL GAINS
SEC 45(1)-CHARGING SECTION
“Any profit or gains arising from the transfer of
capital assets is taxable under the head capital gains
in the previous year in which the transfer has taken
place.”
3. Conditions for Gains to be charged under Capital
Gains
There should be a capital asset.
The capital asset should be transferred by
the assessee.
Such transfer should take place during the
previous year.
The profits or gains should arise as a result
of this transfer.
Such profit or gain should not be exempted
from tax under sections 54, 54B, 54D, 54EC,
54F and 54G & 54GA.
4. DEFINITION OF CAPITAL ASSETS
SEC 2(14)
Capital asset is defined to include property of any
kind, whether or not connected with the business or
profession of the assessee.
5. EXCEPTIONS TO CAPITAL ASSETS
a) Any stock-in-trade, consumable stores or
raw material held for the purposes of
business or profession.
b)Personal Effects ,that is to say, Movable
property of the Assessee including wearing
apparel and furniture held for his personal
use or for the use of any member of his
family dependent on him. But excludes--
(a)Jewellery
(b) Archaelogical collections
6. (c ) drawings
(d) paintings
(e)sculptures
(f) any work of art.
NOTE—Silver utensils constitute personal effects
and no capital gains will arise.
Gold utensils are not personal effects and are
capital assets
7. CONTD…….
c) Agricultural land in India provided it is not
situated in urban area.i.e Rural agricultural
land
d) 6 ½ % Gold Bonds, 7% Gold Bonds or
National Defence Gold Bonds, issued by the
central government.
e) Special Bearer Bonds, and
f) Gold Deposit bonds issued under Gold
Deposit Scheme of 1999.
8. 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”.
9. METHOD OF DETERMINING
PERIOD OF HOLDING
In case when the assessee acquires an asset as a gift or
by a will, the period for which the previous owner
holds the asset is also included.
10. •Any transaction involving the allowing of the
possession of any movable property to be taken or
retained in part of performance of contract of the
nature referred to in the sec53a of the transfer of
property act,1982
•Any transaction (whether by way of becoming a
member of, or acquiring shares in a co-operative society,
company association of person or by way of agreement
or any arrangement or in any other manner whatsoever)
which has the effect of transferring or enabling the
enjoyment of any immovable property
11. • Transfer Includes
• Sale
• Exchange
• Relinquishment
• Extinguishment
• Compulsory Acquisition
• Conversion of Capital Asset Into Stock in Trade[sec(45(2)]
12. •Distribution of Assets to Its Shareholder on Its Liquidation
[Sec46(1)]
•Distribution of Capital Assets in HUF to Its Member at the Time
of Total or Partial Partition [Sec 47(1)]
•Transfer of a Capital Asset Under a Will or an Irrevocable Trust or
a Gift [Sec 47(iii)]
• Transfer of a Capital Asset by a Company to Its Wholly Owned
Indian Subsidiary Company [Sec 47(iv)]
• Transfer of a Capital Asset by a Wholly Owned Subsidiary
Company to Its Indian Holding Company [Sec 47(v)]
13. SEC 48-Method of Computation of
Capital Gains
Sales Consideration received or accruing as a result of
transfer
Less-cost of acquisition of the asset
Less-cost of improvement to the asset
Less-Expenditure incurred wholly and exclusively in
connection with such transfer
14. SECOND PROVISO TO SEC 48-
INDEXATION
Where the capital gains arises from the transfer of a
Long term capital Asset ,then for the purposes of
computing capital gains:
(a) “Indexed cost of acquisition” shall be taken instead
of “Cost Of Acquisition”.
(b) “Indexed cost of improvement” shall be taken
instead of “Cost Of improvement”.
ICOI=COST OF IMPROVEMENT xCost inflation index
for the year in which asset is transferred/Cost inflation
index for the first year in which Improvement to the
asset took place
15. •Transfer in Case of Amalgamation Sec[47(vi)]
•Transfer in Case of Demerger Sec[47(vi B)]
•Transfer of Agricultural Land in India Effected Before March 1, 1970
[Sec 47(viii)]
• Transfer of a Capital Asset , Being Any Work of Art ,Scientific or Art
Collection, Book, Drawing, painting, photograph Etc [Sec47(ix)]
•Transfer by Way of Conversion of Bonds or Debenture of a Company
Into Shares or Debenture of That Company [ Sec 47(x)]
16. 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) 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.
17. 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) 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
The balancing amount is Long Term Capital
Gain/Loss.
18. FULL VALUE OF CONSIDERATION
Full value means whole price without any deduction
and consideration in which transferor receives in
lieu of asset he parts with.
19. EXPENDITURE ON TRANSFER
Expenditure incurred wholly and exclusively in
connection with transfer of capital asset is
deductible from full value of consideration. This
means expenditure incurred which is necessary to
effect the transfer like brokerage commission, cost
of stamp, registration fees and all
20. COST OF ACQUISITION
Cost of acquisition of an asset is the value for which
it is acquired by the Assessee, expenses of capital
nature for acquiring the title are include in cost of
acquisition.
21. NOTIONAL COST OF ACQUISITION
Cost to previous owner is considered as cost of
acquisition to the assessee if that capital asset
become property in cases like.
a) Distribution of asset on partial or total partition
of Hindu Undivided Family.
b) Acquisition of property under gift and will.
c) Acquisition of property by a HUF where one of
its member has converted his self acquired
property into joint family property after Dec 31-
1969.
22. COST OF IMPROVEMENT
- It means all expenses of capital nature incurred in
making any addition/ alteration to capital asset by
assessee.
1) Expenditure after 31 mar 1981 will only be
considered.
23. INDEXED COST OF ACQUISITION
OR IMPROVEMENT
Cost Inflation Index.
Cost inflation Index for any year means such
index as the central government may , having
regard to 75% of average rise in consumer price
index for urban non manual employees of the
immediate preceding pervious year to such year,
by notifying in official gazette
24. COMPUTATION OF INDEXED COST.
Case1) Capital asset acquired before 1-4-1981
Cost X Cost Inflation Index in the year of Transfer
Or FMV on 01.04.1981 Cost Inflation Index for yr 1981-82
(whichever is high)
2) Capital asset acquired after 1-4-1981
Cost X Cost Inflation Index in the year of Transfer
Cost Inflation Index for yr of purchase
25. 3) Capital asset acquired by assesse before 1-4-1981 & originally acquired by previous
owner before 1-4-1981.
Cost to Previous Owner X Cost Inflation Index in the year of Transfer
Or FMV on 01.04.1981 Cost Inflation Index for yr 1981-82
(whichever is high)
4) Capital asset acquired by assesse after 1-4-1981 & originally acquired by previous
owner before 1-4-1981.
Cost to Previous Owner X Cost Inflation Index in the year of Transfer
Or FMV on 01.04.1981 CI Index for yr the asset is first held by assesee
(whichever is high)
5) Capital asset acquired by assesse after 1-4-1981 & originally acquired by previous
owner after 1-4-1981.
Cost to Previous Owner X Cost Inflation Index in the year of Transfer
CI Index for yr the asset is first held by assese
26. Indexed Cost of Improvement
1. Ignore Improvement Before 1.04.1981 in all cases .
Indexed Cost
=Cost of Improvement X CI Index in Yr of Transfer
CI Index in Yr of Improvement
27. Sec 45(1A)-CAPITAL GAINS ON
INSURANCE CLAIMS
Where any person receives at anytime during the 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 etc
(ii)riot or civil disturbance
(iii) accidental fire or explosion
(iv)action taken by an enemy or action taken in
combating an enemy
Then any Capital gains arising from the receipt of such
money or other assets shall be chargeable to tax
28. Sec 45(1A) is not attracted if an asset is destroyed and
no insurance compensation is received. Such a
destruction of asset shall not be treated as transfer and
thus there will be no Capital Gains.The cost of the
asset destroyed shall be a capital loss which has no tax
treatment.
The Capital gains shall not be taxable in the year in
which asset is destroyed but shall be taxable in the
year in which Insurance money is received or an asset
is received from the Insurance company.(Exception to
charging section 45(1).
29. Section 45(3)
Taxable in the hands of the partner
Consideration: Amount recorded in the books of
accounts
30. Section 45(4)
Chargeable in the hands of the firm
Consideration : fair market value as on the
date of transfer
31. Slump sale means transfer of one or more undertakings as
a result of sale for lump sum consideration without values
being assigned to individual assets and liabilities in such
sales –Section 2(42C).
32. SLUMP SALE
Cost of acquisition : Net worth
No indexation
Short term/long term
Value of assets : Depreciable/non-depreciable
Value in the hands of purchaser.
33. SEC 50C-SPECIAL PROVISIONS FOR FULL
VALUE OF CONSIDERATION IN CERTAIN
CASES
Where the consideration received or accruing on
transfer of a capital asset ,being land or building or
both,
Is less than
The value assessed or assessable by the Stamp
Valuation Authority for the purpose of payment of
stamp duty,
The value so assessed or assessable shall be deemed to
be the Sales Consideration.
34. Where the assessee claims that the value so assessed or
assessable exceeds the FMV of the property and
the value so assessed or assessable has not been
disputed in any appeal or revision before any authority,
the A.O. may refer the valuation of the capital asset to
a Valuation Officer.
Where value ascertained by the Valuation officer
Exceeds the Stamp
duty value
Is lower than the
Stamp duty value
Stamp duty value shall be
taken as Sales Price
Value ascertained by
Valuation officer shall
be taken as Sales price
35. SEC 50D-FAIR MARKET VALUE DEEMED TO BE
FULL VALUE OF CONSIDERATION IN CERTAIN
CASES
Where the consideration received or accruing as a
result of transfer of a capital asset by an assessee is not
ascertainable or cannot be determined ,then, for the
purposes of computing income chargeable to tax as
capital gains ,the fair market value of the said asset
on the date of transfer shall be deemed to be the full
value of the consideration received or accruing as
a result of such transfer.
36. CAPITAL GAINS ON CONVERSION OF DEBENTURES
INTO SHARES [SEC 49(2A)]:
1) Any transfer by way of conversion of debentures,
debenture – stock, or deposit certificates in any form, of a
Co. into shares or debentures of that co. is not regarded as a
transfer giving rise to Capital gains.
2) Cost of Acquisition will be the cost of debentures,
debentures – stock or deposit certificates which has been
appropriated towards to shares or debentures in case there
is sale of above transferred assets giving rise to capital
gains.
37. CAPITAL GAINS ON CONVERSION OF DEBENTURES
INTO SHARES
[SEC 49(2A)]:
In case of conversion of debentures into Shares:
1) Cost of Debentures will be the Cost of acquisition
of shares.
2) To find out whether or not shares are LTCA or
STCA, the period of holding shall be determined
from date of allotment of shares.
3) The indexation will start from the date of
conversion of debentures into shares.
4) Not applicable for preference shares converted into
equity shares.
38. CAPITAL GAINS ON TRANSFER OF SECURITY BY
DEPOSITORY
[ SEC 45(2A) ]
1) Any beneficial will be chargeable to Income tax, if in
PY he has had
any profits or gains by virtue of transferring of any
securities through
depository or participant of such beneficial interest.
2) It shall not be income of the depository.
3) Cost of Acquisitions and the period of holding of any
securities shall be determined on the basis of the First
– In – First – Out (FIFO)
39. Sec 45(2A)(contd.)
4)FIFO shall be applied only in respect of
dematerialized holdings, as physical form of
shares are still in possession of the investor when
there is sale of dematerialized shares.
5) FIFO shall be applied accountwise incase if there
are multiple depository accounts, as sale in
particular account shall not be construed as sale in
other accounts.
6) Date of entry is used for the basis of FIFO.
40. COMPUTATION OF CAPITAL GAINS IN THE CASE OF
SELF GENERATED ASSETS.
Self Generated
Assets
Sale
Consideration
Cost of
Acquisition
(SEC-55)
Cost of
Improvement
(SEC 55)
Expenses on
transfer
1. Goodwill of a
Business
Actual Nil Nil Actual
2. Tenancy
Rights, Route
Permits & loom
Hours
Actual Nil Actual Actual
3.Rights to
manufacture,
Produce or
Process any
article
Actual Nil Nil Actual
4. Trade mark or
brand name
associated with
a business
Actual Nil Actual Actual
41. CAPITAL GAINS IN CASE OF BONUS
SHARES
Original Shares Bonus Shares
Acquisition Cost of
Acquisition
Acquisition Cost of
Acquisition
Acquired before
April1, 1981
Actual Cost or Fair
Market Value on
1st April 1981
whichever is more
Acquired before
April1, 1981
Fair Market Value
on 1st April 1981
Acquired before
April1, 1981
Actual Cost or Fair
Market Value on
1st April 1981
whichever is more
Acquired after
April1, 1981
Nil
Acquired after
April1, 1981
Actual Cost Acquired after
April1, 1981
Nil
42. CAPITAL GAIN ON TRANSFER OF RIGHTS
SHARES
For Original Shareholder ( Renouncer )
Cost of Acquisition :
Cost of acquiring original shares.
Cost of aquiring Rights shares.
Premium Received on renouncement – Short
Term Capital Gain.
For the Renouncee
Cost of Acquisition :
Amount paid to Company
Premium paid to the renouncer.
43. CAPITAL GAINS IN CASE OF COMPULSORY
ACQUISITION OF AN ASSET [SEC 45(5)]
Applicability :
Transfer of capital asset by way of compulsory acquisition
under any law.
Capital asset is transferred (not by way of compulsory
acquisition), & consideration is approved or determined by
central Gov. or RBI.
Chargeability :
Initial Compensation is full value of consideration.
Charged in the year in which first Initial Compensation is
received
Enhanced Compensation-Taxable in the year in which it is
received by the assessee.
*Nature of capital gains shall be the same as the nature of capital
gain with reference to original compensation.
*COA= nil
44. SEC 45(2)-CONVERSION OF CAPITAL
ASSETS INTO STOCK IN TRADE
Transfer includes conversion of a capital assets into stock
in trade of the business carried on by the assessee.
Capital gains shall be charged to tax in the year in which
the stock in trade is sold or transferred by the assessee.
The Fair Market value as on the date on conversion shall be
deemed to be the sales consideration .
PGBP=Sale price of Stock –FMV as on the date of
conversion
Capital gain=FMV of the asset on the date of conversion-
Cost of acquisition
45. Example
A building has been acquired by the assessee on 1.06.1980
for Rs.1,00,000.The assessee converts the building into
stock in trade of his property dealing business on 1.01.1992
when the fair market value of the building is
RS.9,00,000.The stock in trade is sold by the assessee on
1.01.2011 for Rs.13,00,000.(FMV as on 1.04.1981 was
Rs.1,80,000).
Assessment year 2011-2012
PGBP income (Rs.13 lac -9lac) = 4 lac
Capital Gains
Period of holding-1.06.1980 to 31.12.91 Long term
Sale price as per Sec 45(2)-Rs.9,00,000
COA =Rs.1,80,000
Indexed COA =1,80,000*199/100=3,58,200
LTCG=Rs.5,41,800
46. OTHER SPECIAL PROVISIONS
Capital Gains in case of Depreciable Assets ( Sec 50 )
Buy Back of Shares
Transfer of Land & Bldg ( Sec 50 [c])
47. EXEMPTION U/S 54
Conditions :
Gains are from Transfer of Residential House Property
Applicable only to Individual / HUF
Asset Sold is a Long Term Capital Asset
Assessee should invest in another Residential House
Property within the specified time limit.
New asset should not be sold within 3 years of acquisition,
otherwise will be treated as a short term capital gain.
Exemption = Amount Invested OR Capital Gains
whichever is Less.
48. EXEMPTION U/S 54B
Available if agricultural land transferred. The said land
should be used by the individual or his parents for
agricultural purposes during at least 2 years immediately
prior to transfer.
Available only to an individual.
Asset Sold should be Short term / Long term Capital Asset.
Investment in agricultural land (rural or urban) within 2
years.
New Asset should not be sold within 3 years of acquisition,
otherwise will be treated as a short term capital gain.
Exemption = Amount Invested OR Capital Gains
whichever is Less.
49. EXEMPTION U/S 54D
Available if land or building forming part of an industrial
undertaking is compulsorily acquired by the govt and
which is used during 2 years for industrial purposes prior to
acquisition.
Available to any person.
Asset Sold should be Short term / Long term Capital Asset.
Investment in land or building for industrial purposes
within 3 years.
New Asset should not be sold within 3 years of acquisition,
otherwise will be treated as a short term capital gain.
Exemption = Amount Invested OR Capital Gains
whichever is Less.
50. EXEMPTION U/S 54EC
Available if any long term capital asset is transferred after
31.3.2000.
Available to any person.
The asset should be a Long term capital asset.
Investment within 6 months in bonds of NHAI or RECL
which are redeemable after 3 years.
New Asset should not be sold within 3 years of
acquisition, otherwise will be treated as a short
term capital gain.
Exemption = Amount Invested OR Capital Gains
whichever is Less.
51. EXEMPTION U/S 54F
Available if any long term capital asset( other than
a residential house property) is transferred,
Available to an individual / HUF.
Investment should be made in a residential house
property within time Limit .
New Asset should not be sold within 3 years of
acquisition, otherwise will be treated as a short
term capital gain.
Exemption = Amount Invested * Capital gains
Net sale consideration
52. EXEMPTION U/S 54G
Available if any land, building, plant or machinery
is transferred in order to shift an industrial
undertaking from urban to rural area.
Available to any person.
Asset may be short term / long term.
Investment should be made in land, building or
plant and machinery to shift the undertaking in a
rural area.
New Asset should not be sold within 3 years of
acquisition,
Exemption = Amount Invested OR Capital Gains
whichever is Less
53. EXEMPTION U/S 54GA
Available if any land, building, plant or machinery
is transferred in order to shift an industrial
undertaking from any area to SEZ.
Available to any person.
Asset may be short term / long term.
Investment should be made in land, building or
plant and machinery to shift the undertaking to
SEZ area.
New Asset should not be sold within 3 years of
acquisition,
Exemption = Amount Invested OR Capital Gains
whichever is Less
54. SEC 10(38)-Exemption in respect of Long
Term Capital Gains in case of
Specified Securities
The following income shall be exempt from income tax
Any income arising from the transfer of a Long term
Capital Asset being an Equity share in a company or
a unit of equity oriented fund where-Such transaction
is chargeable to Securities Transaction Tax (STT)
and the transaction of sale of equity share or unit is
entered into on or after 1.10.2004.
55. SEC 111A-TAX ON SHORT TERM
CAPITAL GAINS IN CERTAIN CASES
SEC 111A shall be applicable to all assesees including
non-residents ,if all the following conditions are
satisfied-
The gains arise from transfer of a short term capital
asset,
Being an equity share in a company or a unit of an
Equity oriented fund
The transaction of sale is chargeable to Securities
Transaction Tax (STT).
Tax payable on such STCG shall be @15%.
56. PROVISO 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)
57. Sec 112 (contd.)
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.