Capital Gain - Page 10

Mere permission to construct on land not results in transfer for capital gain tax

Seshasayee Steels P. Ltd. Vs ACIT (Supreme Court)

SC held that, under the sale agreement, the Taxpayer had granted mere license to Vijay Shanthi Builders Ltd. which cannot be equated with possession of property which necessarily requires control over the property and not mere occupation and, hence, provisions of Transfer of Property Act, 1882 were not attracted....

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S. 54F Exemption if house construction not completed within 3 Years?

Mr. Sanghai had sold a commercial property, which was a long term asset and invested the same in purchase and construction of a flat in a apartment in Mumbai, within the one year of sale of asset and claimed deduction u/s 54F of income tax act, but later the builder has not completed the possession of the apartment within 3 years and the ...

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Posted Under: Income Tax | ,

Home loan interest can be included in cost in Capital Gain Computation

ITO Vs Smt. R. Aishwarya (ITAT Chennai)

Assessee is entitled to include interest in the capital cost while computing capital gains U/s 48 of the Act. Judicial discipline requires us to follow the order of a co‑ordinate bench....

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Eligibility of Interest on housing loan for double deduction

Interest on housing loan which was claimed as a deduction under section 24(b) [while computing income from house property] was also deducted by the assessee under section 48 [as cost of acquisition while computing capital gains from sale of such house property]....

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Posted Under: Income Tax | ,

Unregistered JDA not falls under section 53A & consequently section 2(47)(v) not apply

PCIT Vs Chuni Lal Bhagat (Punjab & Haryana High Court)

Where no possession had been given by the transferor to the transferee of the entire land in part performance of JDA so as to fall within the domain of section 53A and in absence of registration of JDA, although executed afterwards, the agreement did not fall under section 53A and consequently section 2(47)(v) did not apply and no further...

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Section 55 – Cost of Acquisition and Improvement

Article explains What is meant by cost of acquisition (Section 55), Cost of Acquisition with Reference to Certain Modes of Acquisition (Section – 49), What is meant by cost of improvement, If the assessee acquires any asset by way of inheritance, partition of HUF or by any other mode specified in sec 49(1) and sec […]...

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Posted Under: Income Tax |

Provisions relating to 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....

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Posted Under: Income Tax | ,

Exemption under section 54GB of Income Tax Act 1961

The provisions of section 54GB of the Income Tax Act exempts the capital gain arising from transfer of a long term capital assets being a ‘residential property’, if the amount is invested in subscription of the equity shares of the eligible company. The present article highlights the said exemption provisions of section 54GB....

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Posted Under: Income Tax |

Transfer of property between firm & partners –Taxation aspects

S. 45(3) and S. 45(4) were brought in to the statute book to deem pooling of assets by partners in to the firm and distribution of assets by the firm to partners on dissolution or otherwise, as transfers for tax purposes with a view to block certain escape routes for avoiding capital gains tax....

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Posted Under: Income Tax |

Section 54GA Exemption under Income Tax Act, 1961

The present article briefly covers the exemption provisions of section 54GA of the Income Tax Act. As per provisions of section 54GA, any capital gain arisen on the transfer of the capital assets (being machinery or plant or building or land) of an industrial undertaking which is situated in an urban area would be exempt. […]...

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Posted Under: Income Tax |

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August 2020