2 Capital Gain

Capital Gain

Conversion of Gold to Electronic Gold Receipt & vice versa not transfer

Income Tax - Transfer of physical gold to Electronic Gold Receipt issued by a Vault Manager or vice versa shall not be considered as ‘transfer’ Section 47...

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Capital Gain on Issue of Bonus Shares (The Nykaa Strategy)

Income Tax - Nykaa issued Bonus Shares in the ratio of 5:1 to its existing shareholders as on 14th November 2022. Nykaa has announced that the Bonus shares were issued to protect the worth of retail investors. Is it? To understand, we need to get the story of Nykaa and its IPO. The Nykaa’s Story Nykaa was the […]...

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Capital Gains Arising In The Event of Liquidation – Analysis

Income Tax - Provision of Section 46 of The Income Tax Act ,1961 related to Liquidation is quite confusing. Let’s make it easier to understand. Capital Gains treatment for the Liquidated Company There are possibly two cases 1. If the Liquidator has distributed all the assets of the company to its shareholder without selling it that is a […]...

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Capital Gains on Transfer of Residential House Property – Section 54 Exemption

Income Tax - Section 54 gives relief to a taxpayer from the Capital gain arising on the sale of his residential house and from the sale proceeds he acquires another residential house....

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Capital Gain Tax on Sale of Inherited Property

Income Tax - In this article, an attempt has been made to simplify tax provisions on capital gain from the sale of Inherited Property with the help of Illustrations....

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Key Features & Benefits of Taxation Laws (Amendment) Bill, 2021

Income Tax - Taxation Laws (Amendment) Bill, 2021 Key Features of Taxation Laws (Amendment) Bill, 2021 1. Provides that no tax demand shall be raised in the future based on the retrospective amendment made through Finance Act, 2012, for any indirect transfer of Indian assets if the transaction was undertaken before 28th May 2012. 2. Provides that the ...

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Analysis of The Taxation Laws (Amendment) Bill, 2021 by ICAI CMA

Income Tax - The government introduced the Taxation Laws (Amendment) Bill, 2021, which seeks to withdraw tax demands made under the Finance Act, 2012 retrospective legislation to tax the indirect transfer of Indian assets. The Taxation Laws (Amendment) Bill, 2021 inserted three provisos (Fourth, Fifth, and Sixth Proviso) in Explanation 5 to Section 9(...

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4 Major Tax Exemptions to Startups

Income Tax - 4 Major Tax Exemptions to Startups includes Income Tax Exemption on profits under Section 80-IAC of Income Tax (IT) Act, Tax Exemption on Investments above Fair Market Value, Introduction of Section 54EE in the Income Tax Act, 1961 and Amendment in Section 54GB of the Income-tax Act....

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Draft Notification on Tax on Long Term Capital Gain on Shares

Income Tax - Finance Act, 2018 has withdrawn the exemption under clause (38) of section 10 of the Income-tax Act, 1961 (the Act) and has introduced a new section 112A in the Act, to provide that long term capital gains arising from transfer of a long-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit o...

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Amend Sec. 47(viab) related to indirect transfer of capital asset situated in India

Income Tax - The Finance Act, 2015 has amended provisions dealing with indirect transfer of capital asset situated in India. The amendment provides clarity on certain contentious aspects with regards to taxation of income arising or accruing from such indirect transfers....

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Section 263 cannot be invoked for non-verification in year of transfer of utilization of amount deposited in Capital Gain Account

Surjit Singh S/o Mehtab Singh Proprietor M/s Beli Ram Surjit Singh Vs PCIT (ITAT Chandigarh) - Any action on part of the Assessing officer to verify utilization of amount deposited in capital gains account scheme needs to be undertaken or examined in the year when the period of three years from the date of transfer of original asset expires and not in year of transfer of original asset....

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Profit from sale of unfinished building taxable as long or short term capital gains

Thayappa Balakrishna Vs ACIT (ITAT Bangalore) - The definition of capital asset as per section 2(14) of the I.T.Act is wide enough to include property of any kind held by an assessee (including an unfinished building) and the sale proceeds of the same would be liable for capital gains as long term capital gains or short term capital gains, depend...

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Deduction u/s 54 was allowable in case capital gains were utilized within time specified but sale deed was not registered

Dr. Sheela Puttabuddi Vs ITO (ITAT Bangalore) - Utilisation of capital gains within time specified would entitle assessee to claim deduction under section 54, notwithstanding fact that new asset was registered beyond period specified under section 54, which according to assessee was beyond her control and was to be liberally construed....

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Capital gain not assessable on land being an agricultural land

DCIT Vs K. Dhandapani and Co. Ltd. (ITAT Chennai) - DCIT Vs K. Dhandapani and Co. Ltd. (ITAT Chennai) ITAT Chennai held that assessee rightly proved that the land sold is agricultural land and agricultural activity was carried out on the same. Hence, the agricultural land is not assessable to capital gains. Facts- The only issue in this appeal of Rev...

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Capital gain exemption available as advance paid for purchase of assets amounts to utilization of capital gain amount

Fibre Boards (P) Ltd. Vs CIT (Supreme Court of India) - Supreme Court held that advances paid for the purpose of purchase and/or acquisition of the assets would certainly amount to utilization of the capital gains for the purpose of purchasing and/or acquiring the aforesaid assets and accordingly capital gain exemption available....

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NHAI discontinue Section 54EC Capital Gain Bonds issuance w.e.f. 01.04.2022

NHAI/11033/54 EC Bonds/2022 - (31/03/2022) - The Government of India in IEBR for FY 2022-23 have not mandated NHAI to raise funds from the market. Therefore. NHAI shall not issue 54 EC Bonds and any other debt instruments/Bonds etc. w.e.f. 01.04.2022. All are requested to please take a note of It and advise all your associates/brokers not to a...

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Guidelines under clause (10D) section 10 of Income-tax Act, 1961

Circular No. 2 of 2022-Income Tax - (19/01/2022) - The Finance Act, 2021 amended clause (10D) of section 10 of the Act by inserting fourth to seventh provisos. Fourth proviso provides that, with effect from 01.02.2021, the sum received under a Unit Linked Insurance Policy (ULIP), issued on or after 01.02.2021, shall not be exempt under the said clau...

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CBDT Notification on Computation of capital gains, not exempt under Section 10(10D)

Notification No. 8/2022-Income Tax [G.S.R. 24(E)] - (18/01/2022) - CBDT vide Notification No. 8/2022-Income tax notifies Rule 8AD Computation of capital gains for the purposes of sub-section (1B) of section 45 i.e. Computation of capital gains, not exempt under Section 10(10D). MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi, t...

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Draft rules for amendments by Taxation Laws (Amendment) Act, 2021

NA - (28/08/2021) - No tax demand shall be raised in future on the basis of the amendment to section 9 of the Income-tax Act made vide Finance Act, 2012 for any offshore indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012 (i.e., the date on which the Finance Bill, 2012 received th...

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Taxation Laws (Amendment) Act, 2021

No. 34 of 2021 - (13/08/2021) - In section 9 of the Income-tax Act, 1961, in sub-section (1), in clause (i), in Explanation 5, after the third proviso, the following provisos shall be inserted, namely:— "Provided also that nothing contained in this Explanation shall apply to— (i) an assessment or reassessment to be made ...

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Recent Posts in "Capital Gain"

Conversion of Gold to Electronic Gold Receipt & vice versa not transfer

Transfer of physical gold to Electronic Gold Receipt issued by a Vault Manager or vice versa shall not be considered as ‘transfer’ Section 47...

Read More
Posted Under: Income Tax |

Capital Gain on Issue of Bonus Shares (The Nykaa Strategy)

Nykaa issued Bonus Shares in the ratio of 5:1 to its existing shareholders as on 14th November 2022. Nykaa has announced that the Bonus shares were issued to protect the worth of retail investors. Is it? To understand, we need to get the story of Nykaa and its IPO. The Nykaa’s Story Nykaa was the […]...

Read More
Posted Under: Income Tax |

Section 263 cannot be invoked for non-verification in year of transfer of utilization of amount deposited in Capital Gain Account

Surjit Singh S/o Mehtab Singh Proprietor M/s Beli Ram Surjit Singh Vs PCIT (ITAT Chandigarh)

Any action on part of the Assessing officer to verify utilization of amount deposited in capital gains account scheme needs to be undertaken or examined in the year when the period of three years from the date of transfer of original asset expires and not in year of transfer of original asset....

Read More

Profit from sale of unfinished building taxable as long or short term capital gains

Thayappa Balakrishna Vs ACIT (ITAT Bangalore)

The definition of capital asset as per section 2(14) of the I.T.Act is wide enough to include property of any kind held by an assessee (including an unfinished building) and the sale proceeds of the same would be liable for capital gains as long term capital gains or short term capital gains, depending upon the period of holding....

Read More

Capital Gains Arising In The Event of Liquidation – Analysis

Provision of Section 46 of The Income Tax Act ,1961 related to Liquidation is quite confusing. Let’s make it easier to understand. Capital Gains treatment for the Liquidated Company There are possibly two cases 1. If the Liquidator has distributed all the assets of the company to its shareholder without selling it that is a […]...

Read More
Posted Under: Income Tax |

Capital Gains on Transfer of Residential House Property – Section 54 Exemption

Section 54 gives relief to a taxpayer from the Capital gain arising on the sale of his residential house and from the sale proceeds he acquires another residential house....

Read More
Posted Under: Income Tax |

Capital Gain Tax on Sale of Inherited Property

In this article, an attempt has been made to simplify tax provisions on capital gain from the sale of Inherited Property with the help of Illustrations....

Read More
Posted Under: Income Tax | ,

Deduction u/s 54 was allowable in case capital gains were utilized within time specified but sale deed was not registered

Dr. Sheela Puttabuddi Vs ITO (ITAT Bangalore)

Utilisation of capital gains within time specified would entitle assessee to claim deduction under section 54, notwithstanding fact that new asset was registered beyond period specified under section 54, which according to assessee was beyond her control and was to be liberally construed....

Read More

Capital Gain Tax on Sale of Properties

Sale of Properties is one of the most common ways if one needs fund. But it becomes awful when one have to pay considerable amount as tax on sale of its property. But if I say there are some exemptions given by Income Tax Act, 1961, wherein one can save moderate amount of tax. For […]...

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Posted Under: Income Tax |

Property Valuation for Capital Gain Tax

Case Study I received a case of Property Valuation Since I am a Registered Valuer –SFA but to serve the customer at one roof , we generally contact our fellow professionals to facilitate the customer Silent features of the case are -The Residential property is inherited to the customer in 1965 -The property is sold […]...

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Posted Under: Income Tax |

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