Long Term Capital Gain

Long-Term Capital Gains on Sale of Immovable Property in India

Income Tax - As per the Indian Income-tax Act, income arising from the sale of a capital asset is taxed under the head ‘Income from Capital Gains’. Under section 48, capital gains are calculated by deducting the followings from the full value of the consideration arising from the sale of property: i) the cost of acquisition, ii) the [&hell...

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Capital Gain Tax Exemption – Part 2 Sale of Inherited Property

Income Tax - In this article, let us focus on specific issues involved in Capital Gain tax exemption on the sale of inherited property. An attempt has been made to simplify the relevant provisions & legal decisions with the help of Illustrations....

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Capital Gain Tax Exemption – Date of Purchase or Construction of New Property – Part 1

Income Tax - 1. The Capital Gain Tax provisions are covered under sections 45 to 55 of the Income Tax Income-tax Act, 1961. These provisions are complicated & the controversy and resultant litigations on capital gains tax have thrown innumerable decisions. In this Series of Capital Gain Tax Exemption, an attempt has been made to simplify the provi...

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Taxation of Income from Sale of Shares

Income Tax - If equity shares listed on a stock exchange are held and sold after 12 months of purchase, the seller may make a long-term capital gain (LTCG) or incur a Long-term capital loss (LTCL)....

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LTCG on Sale of Listed Equity Shares/Equity oriented Mutual Fund Units

Income Tax - Long Term Capital Gains (LTCG) on Sale of Listed Equity Shares/Units of Equity oriented Mutual Funds (Sec 112A) A. If any person Sales/transfers Equity Shares listed on recognized stock exchange or Units of Equity Oriented Mutual Funds After one year from the date when such Share/Units of Mutual Funds was purchased and such transaction re...

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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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Scrip wise details of long term capital gains in ITR is Optional: CBDT

Income Tax - Schedule 112A and 115AD(1)(iii) of long term capital gain are provided in the Income Tax Return software as per the Instructions to the Notified ITR form and based on taxpayer feedback. Taxpayers have an option to either enter the Scrip wise details of long term capital gains in Schedule 112A and 115AD(1)(iii) so that the […]...

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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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Draft notification to stop misuse of long term capital gain exemption

Income Tax - In order to curb the practice of declaring unaccounted income as exempt long term capital gain by entering into sham transactions, the Finance Act, 2017 amended the provisions of section 10 (38) of the Act to provide that exemption under this section for income arising on transfer of equity share acquired or on after 1st day of October, 2...

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Steps by MCA & DIPP to promote startup India programme

Income Tax - Relaxations for companies, including start-ups have been provided through changes in various rules notified under Companies Act, 2013, and include following...

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Assessee cannot claim Section 54F exemption based on unregistered Banakhat agreement

Navghanbhai Laxman Rabari Vs ITO (ITAT Ahmedabad) - ITAT held that, transfer of property only takes place when either possession of property is transferred or sale deed is executed and documents like unregistered ‘Banakhat’ or power of attorney are not substitute of sale deed....

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LTCG on sale of equity shares of Lifeline Drugs and Pharma Ltd. is not genuine: ITAT Indore

Rupesh Vyas Indore Vs ACIT (ITAT Indore) - Rupesh Vyas Vs ACIT (ITAT Indore) Feeling aggrieved by appeal-order dated 20.09.2018 passed by learned Commissioner of Income-Tax (Appeals)-1, Indore [“Ld. CIT(A)”], which in turn arises out of assessment-order dated 15.12.2016 passed by the learned ACIT-3(1), Indore [“Ld. AO”] u/s 143(3) of...

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Capital loss on sale of STT paid shares/mutual fund cannot be set off against LTCG on sale of land

JCIT (OSD) Vs Shri Sujan Azad Parikh (ITAT Mumbai) - ITAT Mumbai held that long term capital loss arising out of the sale of shares and units of mutual funds on which STT was paid and covered under section 10(38) could not be set off against long-term capital gain arising out of the sale of land as per section 70(3) of the Act....

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Exemption u/s 10(38) not available in case of LTCG for sale of bogus equity shares

Rajendra Kumar Gupta Vs ITO (ITAT Kolkata) - ITAT Kolkata held Long Term Capital Gain (LTCG) for sale of equity shares as bogus and accordingly not eligible to exemption u/s. 10(38) of Income Tax Act, 1961....

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LTCG exemption claimed by one co-owner is eligible to another

Rasilaben Yogeshbhai Patel Vs I.T.O (ITAT Ahmedabad) - ITAT Ahmedabad held that once similar Long Term Capital Gain offered and exemption claimed by the co-owner is already accepted by the revenue, another co-owner (assessee) entitled for similar relief....

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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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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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CBDT notifies Cost Inflation indexes with Base Year as 2001-02

Notification No. 44/2017-Income Tax [S.O. 1790(E)] - (05/06/2017) - CBDT has vice Notification No. 44/2017 notified Cost Inflation indexes with Base Year as 2001-02 for the Financial Year 2001-02 to 2017-18 and same are applicable from Financial Year 2017-18....

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CBDT notifies Cost Inflation Index for Financial Year 2015-16

Notification No. 60/2015 - Income Tax - (24/07/2015) - Notification No. 60/2015 - Income Tax S.O. (E) – In exercise of the powers conferred by clause(v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India in the...

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Recent Posts in "Long Term Capital Gain"

Long-Term Capital Gains on Sale of Immovable Property in India

As per the Indian Income-tax Act, income arising from the sale of a capital asset is taxed under the head ‘Income from Capital Gains’. Under section 48, capital gains are calculated by deducting the followings from the full value of the consideration arising from the sale of property: i) the cost of acquisition, ii) the [&hell...

Read More
Posted Under: Income Tax |

Capital Gain Tax Exemption – Part 2 Sale of Inherited Property

In this article, let us focus on specific issues involved in Capital Gain tax exemption on the sale of inherited property. An attempt has been made to simplify the relevant provisions & legal decisions with the help of Illustrations....

Read More
Posted Under: Income Tax | ,

Capital Gain Tax Exemption – Date of Purchase or Construction of New Property – Part 1

1. The Capital Gain Tax provisions are covered under sections 45 to 55 of the Income Tax Income-tax Act, 1961. These provisions are complicated & the controversy and resultant litigations on capital gains tax have thrown innumerable decisions. In this Series of Capital Gain Tax Exemption, an attempt has been made to simplify the provi...

Read More
Posted Under: Income Tax | ,

Taxation of Income from Sale of Shares

If equity shares listed on a stock exchange are held and sold after 12 months of purchase, the seller may make a long-term capital gain (LTCG) or incur a Long-term capital loss (LTCL)....

Read More
Posted Under: Income Tax |

LTCG on Sale of Listed Equity Shares/Equity oriented Mutual Fund Units

Long Term Capital Gains (LTCG) on Sale of Listed Equity Shares/Units of Equity oriented Mutual Funds (Sec 112A) A. If any person Sales/transfers Equity Shares listed on recognized stock exchange or Units of Equity Oriented Mutual Funds After one year from the date when such Share/Units of Mutual Funds was purchased and such transaction re...

Read More
Posted Under: Income Tax |

Long Term Tax benefits removed from Debt Mutual Funds & its consequences

It has been proposed that investments in mutual funds on or after 01/04/2023 where not more than 35% is invested in equity shares of an domestic companies (i.e. debt funds, international funds and gold funds) will now be deemed to be short term capital gains like Market Linked Debentures i.e. it will be liable to be taxed as per slab rate...

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Posted Under: Income Tax | ,

Assessee cannot claim Section 54F exemption based on unregistered Banakhat agreement

Navghanbhai Laxman Rabari Vs ITO (ITAT Ahmedabad)

ITAT held that, transfer of property only takes place when either possession of property is transferred or sale deed is executed and documents like unregistered ‘Banakhat’ or power of attorney are not substitute of sale deed....

Read More

LTCG on sale of equity shares of Lifeline Drugs and Pharma Ltd. is not genuine: ITAT Indore

Rupesh Vyas Indore Vs ACIT (ITAT Indore)

Rupesh Vyas Vs ACIT (ITAT Indore) Feeling aggrieved by appeal-order dated 20.09.2018 passed by learned Commissioner of Income-Tax (Appeals)-1, Indore [“Ld. CIT(A)”], which in turn arises out of assessment-order dated 15.12.2016 passed by the learned ACIT-3(1), Indore [“Ld. AO”] u/s 143(3) of the Income-tax Act, 1961 [the Act] for ...

Read More

Capital loss on sale of STT paid shares/mutual fund cannot be set off against LTCG on sale of land

JCIT (OSD) Vs Shri Sujan Azad Parikh (ITAT Mumbai)

ITAT Mumbai held that long term capital loss arising out of the sale of shares and units of mutual funds on which STT was paid and covered under section 10(38) could not be set off against long-term capital gain arising out of the sale of land as per section 70(3) of the Act....

Read More

Exemption u/s 10(38) not available in case of LTCG for sale of bogus equity shares

Rajendra Kumar Gupta Vs ITO (ITAT Kolkata)

ITAT Kolkata held Long Term Capital Gain (LTCG) for sale of equity shares as bogus and accordingly not eligible to exemption u/s. 10(38) of Income Tax Act, 1961....

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