Capital Gain

Taxation relating to Listed Shares

Income Tax - Income from selling listed shares can be taxed under:- ♦ Capital Gain ♦ Business income or ♦ Speculative Business income. Let us first understand the types of Trading:- 1. Intraday Trading – Shares are bought & sold on the same day without taking the delivery of the shares. 2. Futures & Option Trading – Here […]...

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Capital Gain Tax on Shares and Mutual Funds

Income Tax - Categorization of Short term and Long Term Asset: Type Termed as Short–Term If Holding period is: Termed as Long-term if Holding period is : Equity funds (Note-1) Less than 12 months 12 months and more Debt funds (Note-2) If less than 36 months More than 36 months Hybrid equity-oriented funds If less than 12 months […]...

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Section 54, 54EC, 54F: Exemption from Long Term Capital Gains Tax

Income Tax - Article deals with Exemption from Long Term Capital Gain Tax under Section 54, 54EC, 54F of Income Tax Act, 1961. Article explains on Sale / Purchase of which Asset under which section exemption is eligible, condition for such exemption, Quantum of Deduction and Exceptions to Exemption under Section 54, 54EC, 54F of Income Tax Act, [&hell...

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Rule-8AC | Computation of STCG & WDV | Depreciation on Goodwill Claimed

Income Tax - Rule-8AC of Income Tax Rules, 1962- Computation of STCG And WDV U/S 50 Where Depreciation On Goodwill Has Been Claimed Section-50 of Income tax Act deals with computation of capital gain in case of depreciable assets. By introducing Notification No. 77/2021 dated 07.07.2021, CBDT inserted the rule no-8AC after rule 8AB by further amending...

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Detailed Analysis of Section 9B, Section 48(III) & Section 45(4)

Income Tax - Hello friends, here we discussed Section 9B, Section 45(4), & Section 48 of the Income Tax Act SECTION 9B OF INCOME TAX ACT Finance Act 2021, introduced a new section, section 9B under income tax act which specifies the provision related to transfer of Capital Assets or stock in trade on Reconstitution or Dissolution of […]...

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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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Draft rules on valuation of ‘unquoted shares’ for Sec. 56(2)(x)/50CA

Income Tax - CBDT has released the draft rules prescribing ‘unquoted shares’ valuation for purposes of Sec. 56(2)(x)/50CA (an important development impacting corporate restructuring) inviting comments from public....

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India and Singapore Sign a Third Protocol for Amending DTAA

Income Tax - Third Protocol amends DTAA with effect from 1st April, 2017 to provide for source based taxation of capital gains arising on transfer of shares in a company....

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Capital Gain cannot be taxed in absence of Transfer in Relevant Assessment Year

Zuari Estate Development and Investment Company Pvt. Ltd. Vs JCIT (ITAT Panaji) - A perusal of the agreement and the above undisputed facts shows that till date no transfer of the property in question has been completed under the Transfer of Property Act, 1882. Still further, the registered sale deed has not been executed by the assessee in favour of the Bank and consequently, sa...

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For Capital Gain Relevant Date is possession date not OC date

Sri G. Dasaratharami Reddy Vs ITO (ITAT Bangalore) - G. Dasaratharami Reddy Vs ITO (ITAT Bangalore) There is no dispute with regard to the fact that the ‘Agreement to sell’ dated 14.12.2007 contains the clause that the balance amount of Rs.16.50 lakhs shall be paid to the seller after obtaining occupancy certificate and also after giving p...

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No Tax if no development taken place & Possession taken back

Santosh Kumar Subbani Vs ITO (ITAT Hyderabad) - Santosh Kumar Subbani Vs ITO (ITAT Hyderabad)  In the instant case, the assessee has entered into development agreement for construction of duplex houses and assessee was to receive the constructed area of 5000 sq.ft by virtue of development agreement. However, after entering into agreement, the de...

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Loss arising from exempt source income u/s 10(38) held allowable to be set-off or carried forward

Shiv Kumar Jatia Vs ITO (ITAT Delhi) - The main issue in this appeal is whether loss from sale of long term capital share on which security transaction tax has been paid should be allowed to be carried forward for set off even though the income from such transfer of long term capital asset is exempt u/ s 10 (38)....

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Taxation of Compensation accrued before applicability of RFCTAAR Act

Krishna Kumar Sharma Vs DCIT (ITAT Agra) - Krishna Kumar Sharma Vs DCIT (ITAT Agra) It is clear that the land in question was acquired by National Highway Authority of India on 05.02.2013 under the National Highway Authority Act, 1856. When the award was passed acquiring the land, the Right to Fair Compensation and Transparency in Land Acqui...

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Rule 8AC Computation of short term capital gains & written down

Notification No. 77/2021-Income Tax [G.S.R. 472(E)] - (07/07/2021) - CBDT inserts new Income Tax Rule 8AC -Computation of short term capital gains and written down value under section 50 where depreciation on goodwill has been obtained vide Notification No. 77/2021-Income Tax | Dated: 7th July, 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT...

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No requirement of scrip wise reporting for listed shares in ITR

Release ID: 1659412 - (26/09/2020) - There was a report in certain section of media that stock traders/day traders are required to furnish scrip wise details in the return of income for AY 2020-21. The gain from share trading in case of stock traders or day traders is generally categorised as short-term capital gains or business income...

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Cost Inflation Index for Financial Year 2020-21- CBDT Notifies

Notification No. 32/2020-Income Tax [S.O. 1879(E)] - (12/06/2020) - CBDT notifies Income Tax Cost Inflation Index for Financial Year 2020-21 or Assessment Year 2021-22 vide  Notification No. 32/2020-Income Tax dated 12th June 2020 at 301. Cost Inflation Index helps taxpayer calculation his Long Term Capital Gain on sale of Long Term Capital Assets. Also Read-Cost I...

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Draft notification for determination of FMV of inventory converted in Capital Assets

(01/01/1970) - Clause (via) in section 28 is inserted by Finance Act, 2018, w.e.f. Financial year 2018-19 and it provides taxation of Inventory in the year in which it is converted in capital Assets. CBDT issued Draft of notification to be issued for amending Income-tax Rules, 1962 for prescribing the manner of d...

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24 FAQs on Taxation of Long Term Capital Gain on Shares

F.No. 370149/20/2018-TPL - (04/02/2018) - Since the introduction of the Finance Bill, 2018 on 1st February, 2018, several queries have been raised in different fora on various issues relating to the proposed new tax regime for taxation of long-term capital gains. The responses to these queries are provided below....

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Recent Posts in "Capital Gain"

Taxation relating to Listed Shares

Income from selling listed shares can be taxed under:- ♦ Capital Gain ♦ Business income or ♦ Speculative Business income. Let us first understand the types of Trading:- 1. Intraday Trading – Shares are bought & sold on the same day without taking the delivery of the shares. 2. Futures & Option Trading – Here […]...

Read More
Posted Under: Income Tax |

Capital Gain Tax on Shares and Mutual Funds

Categorization of Short term and Long Term Asset: Type Termed as Short–Term If Holding period is: Termed as Long-term if Holding period is : Equity funds (Note-1) Less than 12 months 12 months and more Debt funds (Note-2) If less than 36 months More than 36 months Hybrid equity-oriented funds If less than 12 months […]...

Read More
Posted Under: Income Tax |

Capital Gain cannot be taxed in absence of Transfer in Relevant Assessment Year

Zuari Estate Development and Investment Company Pvt. Ltd. Vs JCIT (ITAT Panaji)

A perusal of the agreement and the above undisputed facts shows that till date no transfer of the property in question has been completed under the Transfer of Property Act, 1882. Still further, the registered sale deed has not been executed by the assessee in favour of the Bank and consequently, sale is not yet completed....

Read More

Section 54, 54EC, 54F: Exemption from Long Term Capital Gains Tax

Article deals with Exemption from Long Term Capital Gain Tax under Section 54, 54EC, 54F of Income Tax Act, 1961. Article explains on Sale / Purchase of which Asset under which section exemption is eligible, condition for such exemption, Quantum of Deduction and Exceptions to Exemption under Section 54, 54EC, 54F of Income Tax Act, [&hell...

Read More
Posted Under: Income Tax |

Rule-8AC | Computation of STCG & WDV | Depreciation on Goodwill Claimed

Rule-8AC of Income Tax Rules, 1962- Computation of STCG And WDV U/S 50 Where Depreciation On Goodwill Has Been Claimed Section-50 of Income tax Act deals with computation of capital gain in case of depreciable assets. By introducing Notification No. 77/2021 dated 07.07.2021, CBDT inserted the rule no-8AC after rule 8AB by further amending...

Read More
Posted Under: Income Tax |

Detailed Analysis of Section 9B, Section 48(III) & Section 45(4)

Hello friends, here we discussed Section 9B, Section 45(4), & Section 48 of the Income Tax Act SECTION 9B OF INCOME TAX ACT Finance Act 2021, introduced a new section, section 9B under income tax act which specifies the provision related to transfer of Capital Assets or stock in trade on Reconstitution or Dissolution of […]...

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Posted Under: Income Tax |

Depreciation and Short-term Capital Gain on Goodwill WEF AY 2021-22

It was well settled position, before the amendments made by Finance Act 2021, that the depreciation can be claimed on ‘Purchased Goodwill’ under the Income tax Law and it was also supported by the decision of Hon’ble Supreme Court in the case of Jogta Coal Co. Ltd. v. CIT 36 ITR 521 where the treatment […]...

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Posted Under: Income Tax |

Improvement of owner’s title to asset is different from improving asset itself

Improvement of owner’s title to asset is different from improving asset itself | Section 48, 49, and 55 of the Income Tax Act, 1961 Cost of improvement which is liable to be deducted , should be an improvement to the asset itself , not an improvement of the owner’s title to the asset . Meaning […]...

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Posted Under: Income Tax |

Rule 8AC Computation of short term capital gains & written down

Notification No. 77/2021-Income Tax [G.S.R. 472(E)] 07/07/2021

CBDT inserts new Income Tax Rule 8AC -Computation of short term capital gains and written down value under section 50 where depreciation on goodwill has been obtained vide Notification No. 77/2021-Income Tax | Dated: 7th July, 2021 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi Notification No. 77/20...

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Taxability on transfer of Capital Assets/Stock-in-trade from specified entity to specified person

Taxability on transfer of Capital Assets/Stock-in-trade from specified entity to specified person The Finance Act 2021, has inserted Section 9B, Section 48(iii) and substituted section 45(4) of the Income Tax Act. The deeming provisions shall be applicable from Assessment Year 2021-22. For the purpose of this article, the term specified p...

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Posted Under: Income Tax |

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