Any Income derived from a Capital asset movable or immovable is taxable under the head Capital Gains under Income Tax Act 1961. The Capital Gains have been divided in two parts under Income Tax Act 1961. One is short term capital gain and other is long term capital gain.
Article explains Taxability of short term capital gains, Capital gains in case of depreciable assets, Capital Gain Where some assets are left in block of assets, Capital Gain When no assets are left in block of assets, Short term capital gain where land & building are sold together, Capital Gain when Capital asset transferred by the partner to the partnership firm, Capital gain in case of Dissolution of a Firm, Calculation of Capital gain from Plot and building , Taxation of Long term capital gains, Section 50C and Section wise Table on Exemptions from long term capital gain.
Page Contents
- 1. Short Term Capital Gains :
- i. Taxability of short term capital gains:
- ii. Capital gains in case of depreciable assets :
- iii. Where some assets are left in block of assets:
- iv. When no assets are left in block of assets:
- v. Short term capital gain where land & building are sold together:
- vi. Capital asset transferred by the partner to the partnership firm:
- vii. Capital gain in case of Dissolution of a Firm:
- 2. Long Term Capital Gain:
1. Short Term Capital Gains :
If any taxpayer has sold a Capital asset within 24 months and Shares or securities within 12 months of its purchase then the gain arising out of its sales after deducting therefrom the expenses of sale(Commission etc) and the cost of acquisition and improvement is treated as short term capital gain and is included in the income of the taxpayer.
The deduction u/s 80C to 80U can be taken from the income from short term capital gain apart from the short term capital gain u/s111A
i. Taxability of short term capital gains:
Section 111A of the Income tax Act provides that those equity shares or equity oriented funds which have been sold in a stock exchange and securities transaction tax is chargeable on such transaction of sale then the short term capital gain arising from such transaction will be chargeable to tax @15% from assessment year 2009-10 onwards.
The short term capital gains other than those u/s 111A shall be added to the income of the assessee and no such benefit is available on short term capital gains arising in other cases and they will be taxed normally at slab rates applicable to the assessee.
If an assessee does the business of selling and purchasing shares he cannot take advantage of section 111A or section 10(38). In this case income will be treated as business income.
ii. Capital gains in case of depreciable assets :
According to section 50 of Income tax act if an assessee has sold a capital asset forming part of block of assets (building, machinery etc) on which the depreciation has been allowed under Income Tax Act, the income arising from such capital asset is treated as short term capital gain.
iii. Where some assets are left in block of assets:
If a part of such capital asset forming part of a block of asset has been sold and after deducting the net consideration received from sale of such asset from the written down value of the block of such asset the written down value comes to NIL then the gain arising shall be treated as short term capital gain and in such case where written down value has become NIL no depreciation shall be available on such block of asset even if some assets are physically left in the block of assets.
iv. When no assets are left in block of assets:
If the whole of the capital assets forming part of a block of assets have been sold during a year and the assessee has suffered a loss after deducting the net sale consideration from the written down value of the block of assets then such loss shall be treated as short term capital loss and no depreciation shall be allowed from such block of assets.
It was decided by Chandigarh tribunal in (2004) 3 S.O.T. 521/ 83 T.T.J. 1057 if the whole of capital assets in a block have been sold in a year and some gain arises after the sale such gain shall not be treated as short term capital gain if some new asset has been purchased within the same year in the same block of assets and the total value of new and old capital assets in the same block is more than the sale consideration of the assets sold, since the block of asset does not cease to exist in such case as is required u/s 50(2). This can be explained with an example as below:
Written down value of 5 Machinery as on 01-04-2020 – Rs. 500000
5 machinery sold on 01-05-2020 – Rs. 600000
New Machinery purchased on 01-06-2020 – Rs. 250000
now in above cases the difference between the w.d.v and sale value i.e Rs 100000 can not be treated as short term capital gain in the year 2020-21 since new machinery has been purchased in the same block of asset afterwards in the same year and the total of new and old machinery is more than the sale value of the machineries sold as a result the block of asset continue to exist.
v. Short term capital gain where land & building are sold together:
Some times it happens that in a block of assets namely land & building, the whole of land & building is sold together. In such cases the capital gain on land and building should be calculated separately.
The Supreme Court has held in (1967) 65ITR 377 that depreciation is available on the value of building and not on the value of plot. Considering the above decision of Supreme Court, the Rajasthan High court in (1993)201 ITR 442 has held that Plot and building are different assets. If the assessee has purchased plot more than 2 years back and constructed building on it less than 2 years back then the gain arising on sale of plot shall be long term capital gain and the benefit of indexation shall be given on it whereas the gain arising on sale of building shall be short term capital gain and will be added to the income of the assessee. Therefore, both should be calculated separately.
Where the plot has been purchased more than three years back and the building has been constructed on it less than 2 years back, it is advisable that in the sale deed the sale value of plot and building should be shown separately for more clarity and if the consolidated sale value of the Plot and building has been written in the sale deed then the valuation of plot and building should be done separately from a registered valuer.
vi. Capital asset transferred by the partner to the partnership firm:
As per section 45(3) of the Income Tax Act 1961 if any partner in a firm transfers his asset to the firm then the capital gain on such asset as arising to the partner shall be calculated by presuming the sale value of such asset as is shown in the books of accounts of the firm and not the market value of the asset.
whether such gain is treated as long term or short term will be decided as below:
a) If the depreciation has been claimed on the asset transferred to the firm then in view of section 50(2) the gain arising there from will be treated as short term capital gain.
b) If the partner has been the owner of the asset for more than 24 months and no depreciation has been claimed on it then the gain arising from such asset shall be treated as long term capital gain.
vii. Capital gain in case of Dissolution of a Firm:
As per section 45(4) of the Income Tax Act where any partnership firm or AOP or BOI is dissolved and the Capital assets of the such firm or AOP or BOI are transferred by way of distribution of assets to the partners at the time of Dissolution in such case the gain arising from such transfer to the partners will be treated as capital gain and the firm will be liable for paying tax on it in the year of distribution of the assets.
For the purpose of section 48 the fair market value of the asset on the date of such transfer shall be deemed to be the full value of the consideration received or accruing as a result of the transfer.
2. Long Term Capital Gain:
A Capital Asset held for more than 24 months and 12 months in case of shares or securities is a long term capital asset and the gain arising therefrom is a long term capital gain. Long term capital gains are arrived at after deducting from the net sale consideration of the long term capital asset the indexed cost of acquisition and the indexed cost of improvement
of the asset.
The Central govt notifies cost inflation index for every year. The indexed cost of acquisition is calculated by multiplying the actual cost of acquisition with C.I.I of the year in which the capital asset is sold and divided by C.I.I of the year of purchase of capital asset. Similarly the indexed cost of improvement can be calculated by using the C.I.I of the year in which the capital asset is improved. Where the capital asset was acquired before the year 2001 then the cost of acquisition shall be the fair market value or the actual cost of its acquisition which ever is higher. The Fair market value of a capital asset can be known by the valuation of the registered valuer.
i. The cost inflation index table:
| Financial year | Cost Inflation Index |
| 2001-02 | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
If a capital asset has been subjected to depreciation then no indexation benefit is allowed on sale of such capital asset in view of section 50(2) as discussed above.
ii. Capital gain from Plot and building should be separately calculated:
As discussed above plot and building are separate assets and the capital gain on above should be calculated separately. If the plot is purchased more than 2 years back and building has been constructed within 2 years the capital gain on plot will be considered as long term and the capital gain on building will be treated as short term capital gain.
iii. Taxation of Long term capital gains:
The long term capital gains are taxed @ 20% after the benefit of indexation as discussed above. No deduction is allowed from the long term capital gains from section 80C to 80U. But in case of individual and HUF where the income is below the basic exempted limit the shortage in basic exemption limit is adjusted against the long term capital gains.
Section 112(1) provides that any capital gain arising from a long term capital asset being the listed securities which are sold outside the stock exchange the long term capital gain shall be calculated on such securities as below:
a) Tax arrived at @ 20% on such long term capital gain after indexation u/s 48 or
b) Tax arrived at @ 10 % on such long term capital gain without indexation
Whichever is less.
The long term capital gain on equity shares or units of equity oriented mutual fund which are sold in the stock exchange and on which securities transaction tax is paid, is exempt u/s 10(38).
iv. Section 50C:
The provisions of Section 50C of the Act states that where the consideration received or accruing as a result of transfer by an assessee of a capital asset, being land or building or both, is less than the stamp duty value for the purpose of payment of stamp duty in respect of such transfer, the value so adopted or assessed or assessable shall, for the purposes of section 48, be deemed to be the full value of the consideration received or accruing as a result of such transfer.
From the above, it is apparent that the provisions of Sec. 50C of the Act will get attracted where a capital asset, being land or building or both is transferred for a consideration, which is less than the stamp duty value. Thus, the basic condition for invoking the provisions of Section 50C of the Act is that the asset transferred should be a capital asset as per Section 2(14) of the Act.
Thus, a rural agricultural land, not being a capital asset u/s. 2(14) of the Act is beyond the ambit of Section 50C of the Income Tax Act, 1961 and any transfer of a rural agricultural land for a consideration, which is less than the stamp duty value is out of purview of Section 50C.
v. Section wise Table on Exemptions from long term capital gain:
Section |
Asset |
Assessee |
Holding Period of Original Assets |
Whether Re-investment Necessary —Time Limit |
Other Conditions / Incidents |
Quantum |
54 |
Residential House Property |
Individual HUF |
2 years |
Yes — In Residential House, within 1 year before, or 2 years after the date of transfer (if purchased) or 3 years after the date of transfer (if constructed). **Where capital gain does not exceed Rs 2 crore, the assessee has the option to purchase/ construct two houses. This option is available once in a lifetime of assessee. |
The amount of gains, or the cost of new asset, whichever is lower |
|
54B |
Agricultural Land |
Individual & HUF |
Use for 2 years |
Yes — In Agricultural Land, within 2 years after the date of transfer. |
Assessee or his parents or HUF must have used the land for agricultural purpose for preceding two years |
As above |
54D |
Industrial Land or Building or anyrighttherein |
Any Assessee |
Use for 2 years |
Yes — In Industrial Land, Building, or any right therein within 3 years after the date of transfer. |
Must have been compulsorily acquired and used for business of Industrial undertaking for preceding 2 years |
As above |
54EC |
Land or Building or both (w.e.f. 2019-20) |
Any Assessee |
2 Years |
Yes — Investment of whole or any part of capital gain in ‘specified assets’. (Refer Note 1)Investment should be made within 6 months from the date of transfer |
Lower of the Capital Gain or the actual amount invested in specified assets.However the aggregate investment made by assessee in the specified asset, during the financial year in which the original asset/ assets are transferred and in the subsequent financial year should not exceed 50,00,000/- |
|
54EE |
Any Long Term Capital Asset |
Any Assessee |
1 year for listed shares, Listed Securities, Units of UTI/ Mutual Fund specified u/s 10(23D), Zero coupon bonds, 2 years for unlisted shares and land and building, 3 years for other capital assets |
Yes — Investment of whole or any part of capital gain in ‘long term specified assets’ as stipulated in the section. Investment should be made within 6 months from the date of transfer. (Note 2) |
Investment made by an assessee in the long term specified asset, from capital gains arising from the transfer of one or more original assets. During the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed Rs 50,00,000/- |
|
54F |
Any Capital Asset (not being a residential house) |
Individual HUF |
1 year for listed shares, listed securities, unit of UTI/ Mutual Fund specified u/s 10(23D), Zero-coupon bonds, 2 years for unlisted shares and any immovable property other than residential house, 3 years for other capital assets |
Purchase of one Residential House in India within 2 years after or 1 year prior to date of transfer or construction of one residential house in India within 3 years from date of transfer |
If cost of new asset is more than the net consideration of original asset, the whole of the gains is exempt. If cost of specified asset is less than net consideration, proportionate amount of the gains will be exempt i.e. Capital Gain * Cost of new Asset / Net Consideration on sale of asset. |
|
54G |
Land or Building or any right therein or Plant or Machinery in Urban Area used for the business |
Industrial undertakings in urban area shifting to an area other than urban area |
No Period specified |
Acquire similar assets and incur expenses on shifting original asset, within 1 year before or 3 years from the date of transfer |
The amount of gains, or the aggregate cost of new asset and shifting expenses, whichever is lower. |
|
54GA |
Land or Building or any right therein or Plant or Machinery in Urban Area used for the business |
Industrial undertakings in urban area shifting to any Special Economic Zone |
No period specified |
Acquire similar assets and incur expenses on shifting original asset, within 1 year before, or 3 years from the date of transfer |
The amount of gains, or the aggregate cost of new asset and shifting expenses, whichever is lower |
|
54GB |
Long Term Capital asset being a residential property (a house or a plot of land) |
Individual & HUF |
2 years |
a. Subscribe to equity shares of an eligible company before due date of return filingb. The company within 1 year of subscription should utilize the amount for purchase of new asset |
If cost of new asset is more than the net consideration of original asset, the whole of the gains is exempt. If cost of specified asset is less than net consideration, proportionate amount of the gains will be exempt i.e. Capital Gains * Cost of New Asset/ Net Consideration on sale of asset. |
Note:
1. “specified asset” for making any investment under this section,—
(i) on or after the 1st day of April, 2007 but before the 1st day of April, 2018, means any bond, redeemable after three years and issued on or after the 1st day of April, 2007 but before the 1st day of April, 2018;
(ii) on or after the 1st day of April, 2018, means any bond, redeemable after five years and issued on or after the 1st day of April, 2018,
by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956) or any other bond notified in the Official Gazette by the Central Government in this behalf.
2. Long term specified asset means unit or units issued before 01/04/2019 of fund notified by Central Government in this behalf.
(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amit@amitbajajadvocate.com, M +919815243335)
Read Other Articles from Advocate Amit Bajaj
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
(Republished with Amendments by Team Taxguru)
Author Bio
I have entered into an agreement for purchase of land and then for construction with a builder in March 2005. The builder was to deliver the flat by October 2008. His project got delayed. He had 23 towers to complete and he started delivering block by block since Sept. 2009. Though he has completed my residential block by 2010 end he has completed my flat in Oct. 2011 only and he hopes to handover this month. If i sell the flat at a rate higher than what i bought it will the capital gain be treated as Long term gain from house property as it is more than 3 years since the delivery was to take place and my payments have all been done ( except the deposits for utilities).
Hi,
I have a query.. My father purchased a land for around 1Lac and with registraton 1.2Lac in the year 1998. Now he is planned to sell out the same and the value is Rs. 15.4 Lacs now. Now tell us will this considered to be a Capitalgain and attract 20% of Tax.
Recently I have sold a Flat, purchased in 1988. This amount totally (investment & gain) is paid to my home loan account(pre-payment), which was taken 2 years back from PSU bank .What will be tax implication for me.Is it need to mention in my next IT return ? I am salaried employee in PSU. Thanx
PLEASE GIVE ANSWER OF MY QUERY
IF I SELL TWO LONG TERM CAPITAL ASSET OTHER THAN HOUSE AND PURCHASE A RESIDENTIAL HOUSE PROPERTY WHETHER I WILL BE ELEGIBLE DEDUCTION U/S 54F FOR CAPITAL GAIN AGAINST BOTH PROPERTIES WHICH I SOLD????
suppose i have a hotel. ant income generated by selling food is taxed under income from business and professin. i buy an oven for my business . use it for 7 years and sold it . under which tax it is taxed?
Sir,
My WDV of the block of assets are Rs.10,000 and i was sold the total block of assets for Rs.1800, still some worthless assets are in that block. During the year i bought new assets worth of Rs.25,000. Can you please tell me the tax treatment. Is this loss of Rs.10,000-Rs.1,800 = Rs.8,200 can be considered as STCG U/S 50 or is this business loss and also Please let me know the net block of asset value at the year end? Is Rs.25,000+Rs.8,200 = Rs. 33,200?
PLease advise the full implication of this issue.
i want to sale my industrial property land and shed which was bought by me in the year 1995. shed was shown as depreciated in balance sheet during it returns.
please advice me about capital gains both long term and short term.
Please let me know, if I have purchase a property in May 2007 and sold the same in Sep 2010 (after more than 3 year), So shall it will be consider as long term capital gain?
Also required some clarification.
1. As proof of purchase, I only have the allotment letter, this property was never register or agreement was created, So allotment letter can be consider and date of allotment as consider as date of purchase and whether it will be any issue, since I do not have any sale deed or registration not done?
Sir,
In case somebody is having house on his land and after 32 years he went for collaboration agreement with the builder. builder is taking one floor and giving some amount to owner.presently it is two store house which builder will demolish and construct four store house.
What will be the status of capital gain tax on the owner?
Regards
Vijay Mathur
We have an old property that we are now collaborating with a builder to develop. 4 floors will be built and we will reatin 2 and the builder will take 2. In lieu of these floors the builder will build the building at his expense and is giving us a sum of money on the execution of the agreement.
This sum of money will attract a LTCG at the time the 2 properties given to the buider are registered. This would take about 2 years.
We wish to invest the sum of money recieved by us in a residential house to offset this capital gain liability and would like to do so today i.e. about 2 years before the registration of the sold part is done.
The law states that we can do so 1 year prior to the sale of the property.
How can we invest in the property today and get the set off for the capital gains liability.
Thanks
I HAVE SOLD A AGRICULTURE LAND(MY PARENTAL PROPERTY) TO A PRIVATE BUILDER
1. WHETHER I HAVE TO PAY INCOEM TAX ON LONG TERM CAPITAL GAIN ON SAID PROPERTY
2. HOW CAN I SAVE MY TAX
THANKS
VIRENDER
Hello,
I have my residential property purchased in mar2009. Agreement value is rs. 1300000.
Now i want to resale it. As per government valuation its value is rs 1900000 appr.
As i am reselling it within 3 years of its purchase do i need to pay capital gain tax.
And also advise how much tax i need to pay. Is there any exemption for senior citizen.
Awaiting Reply.
Regards,
Sushant
I STT and Service tax allow to adjust with short term gain on shares
I have a Commercial Property purchased in the year July 2004, and am planning to sell the property this F Y, kindly help me in knowing the tax implication on 2 situations :
1 ) If i sold my property this year and i have some capital gain, what is the tax implication if i have not purchased any other property with the same amount.
2) If i have one more property other than the sold property , can i purchase one more property and get the exemption.
Kindly reply on priority.
Dear Sir,
We are 3 partners in a partnership firm. we purchased and sold the land within 3 years in the name of partnership firm. The firm does not have PAN no. etc. Can we transfer the amount of sale to the partner’s individual account in their ratio. And can each partner individually pay tax on his share of capital gain.
Kindly guide me.
thanks and regards
if i take shorfall adjustment aganist sec.111A then what is tax rate for remaining amount under sec 111A?
OUR BUSINESS PROPOSE TO SELL LORRY HAVING WDV OF RS. 4.50 LAKH ON 1/4/2010.THE NET SALE CONSIDERATION WOULD BE RS.4.00 LAKH.
WHAT WOULD BE THE AMOUNT OF CAPITAL GAIN / LOSS?
Dear amit,
I encashed shares of an unlisted company after holding the shares for 2.5 years. Now I want to know what is the best way to avoid tax on the long term capital gains of about 10L .
My understanding is that I can get an exemption even if I bought a house of that value 1 year ago. My clarification is is this 1 year taken as exactly 12 months back or it is seen as being in the previous assessment year? I realised the sale now in Feb-11 and this residential property was purchased in Nov-09. Will I be able to avail the benefit?
If yes, will this benefit be available against the total value of house purchase (55L)or only the portion I paid (10L), excluding the loan value?
thanks for your time, Charles
Sir,
I have a business with a capital of 270 lakhs with a loan of 165 lakhs, private loans and creditors are 254 lakhs and the net block is 216 lakhs and the accumulated losses are around 300 lakhs, now i want sell the unit, the buyer is interested to buy only assets in that case Please advice, whether any capital gain tax is payable due to this sale transaction, if yes how much ? the sale price is 540 lakhs approximately.Whether is short term or long term. I
Sir, how do we calculate long term capital for following:
1. Sale of Industrial land and building 10 years old which also has an OTS libility.
2. Does the OTS amount get added to the cost of land and building?
3. And what are the options to avail capital gain tax exemption on such property sale.
Kindly enlighten and oblige.
Dear Sir
THE PROPERTY SOLD AND GETTING REGISTERED/TRANSFERED IN FEB-MARCH 11
WHEN THE CAPITAL GAIN TAX IS PAYABLE ?WHETHER IN FY 10-11
OR FY 11-12.
KLY REPLY BY EMAIL
REGARDS
KISHORE
We are a family of four brothers and had an ancestral property. We got into a development agreement with a builder and later a sale deed. According to the agreement we would receive 15 lakhs each and 3 flats each on the property (which we have not received yet since the last two years). For tax calculation purpose, we got the property assessed as it was pre-1981 by a valuer. The value of the land worked out to two crores. My question is about myself. On what amount would the tax be calculated on 15 lakhs I have received or on the 2 crores which is the value of the land as per 1981 assessment? If on 15 lakhs then how much is the tax and under what section? If the tax is calculated on 2 crores then under what section?
X and Y both brothers acquired a property in 1998 with aquisition price 13500 vide conveyance deed , X and Y both gifted the property to X”s wife in feb 2009 with aquisition price 1720000.vide sale deed.if X”s wife sell the property in 2011 , will it cum under long term or short term capital gain…..if it’s under short term which price of aquisition will be considered to calculate the tax.
I have a query in this regard in a specific case-
1. A commercial office purchased in March 2007 for Rs.6,80,000/- for investment purpose but not used for any personal business or profession, therefore nay depreciation is not yet claimed on this property.
2. The same office is sold in December 2010 for Rs.15,00,000/-
3. The entire consideration received is reinvested on puchase of a new commercial office in the same month i.e. December 2010 for Rs.16,00,000/-
Please advice, whether any capital gain tax is payable due to this sale transaction, if yes how much ?
is sale of long term commercial property allowed for without indexation then how much tax rate is applied?
is sale of long term commercial property allowed for without indexation then how much tax rate is applied
I have Quried that i have sold 2 properties(Owned ) and purchase 1 new properties,out of two properties one of the properties is inharited by matronal site can i Eligable for deduction under section 54 of income tax, Act,1961 for both properties.
I have bought equity shares worth Rs. 70,000 in April 2007. Current value of this is Rs. 8.7 lac.
1) If I sell these today what will be the Income Tax implecations?
2) Also, how to save this income tax?
Pl help.
My wife has yearly will have income of less than Rs 1,90,000/- which includes short term capital gains of Rs. 15,000/-. will she pay nil tax or 15% of Rs. 15,000/-
Sir,
I own a residential house from 1984 that is rented out all along. If I sell this house and make a net Long Term Capital Gain, am I entitled to claim exemption by investing in a specified Bond or another investing in another residential property?
Kindly note thatI also own another residential house where I dwell?
Grateful for your kind comments on this matter.
hello,
i got one query, iam retd govt.employee.
iam having an house plot(ancestral) i want to sell it off.
and in order to avoid CAPTIAL GAINS want to purchase an AGRICULTURE land.
i want to know whether this will be ok.(i want to invest complete amount in AGRICULTURE land purchase. is there any time limit.?
i want to GIFT some amount to MY SONS AND DAUGHTERS IS THERE ANY TAX IMPLICATIONS?
what are the other options available for me to avoid the payment of CAPTIAL GAINS tax.
AS OF NOW IAM NOT PAYING ANY INCOME TAX. AS MY INCOME IS LESS THAN TAX SLABS.
thanks in advance
murthy
It was very helpful as presentation was to the point and was excellent.
All the points were covered.
case examples given was found very useful
thanks.
if the mutual funds are equity oriented funds, the long term gain from which if any, is exempt u/s 10(38), then the loss arising therefrom in your case will not be allowed to be set off from the LTCG arising from commericial house property, otherwise it can be set off and for the remaining LTCG you will have to invest propotionate amount of the sale proceed in a residential house to claim exemption u/s 54F.
i have sold my commercial house property @8.5 lac with ltcg of 6 lac…… nw i also have sold my mutual fund making a long term loss of .80 lac …nw wat is the amount i need to invest in new house to avail full exemption under 54f ??
If the block of asset continue to exist then no stcg will arise from sale of one asset in the same block.
Q: If long term equity shares are sold in an off market transaction whether the resultant loss can be allowed to be set-off against taxable long term gains.
If LTCG arising from equity shares which is not exempt u/s 10(38)is taxable then LTCL arising from such case will also be allowed to be set off.
Assets comprising machinery, office equipments, car come under block of assets – Machinery & Plant. If say machinery wdv on 1.4.2009 is Rs 1,00,000 is sold for Rs 1,25,000 while WDV of office equipments and car as of 1.4.2009 is Rs 5,00,000 and depr for th year is Rs 75,000. Will the excess of Rs 25,000 received on sale of Machinery be taxed under short term capital gains, although other capital assets in the block contines ?
If long term equity shares are sold in an off market transaction whether the resultant loss can be allowed to be set-off against taxable long term gains.
LTCG arising from a commercial property is also eligible for exemption u/s 54F
Yes, 15% if stcg arises from shares and securities and at normal slab rate if arises from other capital assets.
If income is above 190000 is due to STCG THEN WILL IT BE CHARGEABLE @ 10% OR 15% for A.Y 10-11
is commercial property eligible for 54F exemption
I HAVE SOLD A LAND OTHER THAN USED FOR AGRICULTURE IN JANUARY,2010. THE LAND WAS PURCHASED IN 2003-04 AND CAPITAL GAIN COMES OUT TO BE APPROX 300000/- AFTER CALCULATING THE INDEX VALUE. MY QUERY IS
1. WHAT IS THE TIME LIMIT FOR THE INVESTMENT IN THE BOND.PLEASE NAME THE BOND IN WHICH I CAN DEPOSIT THE SAME AND WHAT AMOUNT I HAVE TO DEPOSIT (i.e. TOTAL SALE AMOUNT OR TOTAL GAIN)
2. IF I WANT TO INVEST IN THE RESIDENTIAL PROPERTY THEN WHAT IS THE PROVISION. IF I CONSTRUCT THE HOUSE OR I PURCHASE A FLAT. PLEASE REPLY SOON SO THAT I CAN DO AS PER YOUR ADVICE IN TIME.
THANKS
AJAY
Sir, I can’t find Section 10(38) in the Income Tax Act 2009. As such does the notion that LTCG from STT paid euity shares are exempt from taxation; still hold good for A.Y. 2010-11
Really an informative and concise article . Shaabhaas
very well presented
Very useful article. To enhance its usefulness, it would have been better to include a section on setting off of ST/LT capital gains against ST/LT capital losses.
very educatieve article
Very good,both informative and useful article.Thanks a lot for providing such articles.
Very Good article. Informative & Comprehensive.