section 45

Reinforcing Non-Taxability of Gains Solely due To Forex Fluctuations

Income Tax - Time and again, the income tax authorities are faced with the issue of determining whether a particular receipt is capital in nature and hence exempt from taxation or is a revenue receipt and hence, taxable. This quagmire is attributable to the fact that the Income Tax Act does not stipulate any definition of the term […]...

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Analysis of Amendment made by Finance Act, 2021 for Section 45(4) & 9B 

Income Tax - Hello friends, here we discussed the provision of transfer of capital asset to partner/member on dissolution or reconstitution of the specified entity [Section 45(4) and section 9B] [W.e.f A.Y. 2021-22]. 1) SECTION 45(4) OF INCOME TAX ACT, 1961 Before Amendment, As per section 45(4), the profits or gains arising from the transfer of a cap...

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Rationalisation of provision of transfer of capital asset to partner on dissolution or reconstitution

Income Tax - Rationalisation of provision of transfer of capital asset to partner on dissolution or reconstitution Section 45(4) of Income Tax act, 1961 – Newly Substitute provide an another exception of capital gain in the year in which Capital asset received by specified person The existing provisions of section 45 (1) of the Act inter alia, p...

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A brief description of Section 9B & 45(4) along with rule and guidelines (income tax provision on reconstitution of firm or AOP or BOI)

Income Tax - A brief description of Section 9B & 45(4) along with rule and guidelines (income tax provision on reconstitution of firm or AOP or BOI) The finance act, 2021 introduced a taxation provision on reconstitution of firm, AOP, BOI (Not being a company or a co-operative society). Here, I try to produce the brief of these […]...

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Reconstitution/Dissolution of firm? Transfer of Assets to partner? | Tax implications

Income Tax - Reconstitution/Dissolution of firm? Transfer of Assets to partner? Wait…..!! Here are the tax implications… Finance Act 2021 has made amendments to the provisions  of the Income Tax Act, pertaining to the tax liability arising on distribution of assets by the firm to its partners on its reconstitution or dissolution.(Note: The words ...

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Interest on Enhanced Compensation from Govt for compulsory Land Acquisition is exempt from tax

Paramjeeet Singh Vs ACIT (ITAT Delhi) - Paramjeeet Singh Vs ACIT (ITAT Delhi) It is pertinent to note that the assessee’s land was acquired by the Government and he received total compensation of Rs. 2,56,29,932/- from land acquisition officer Panchkula which include interest on enhanced compensation of Rs. 1,08,62,416/- and assessee cl...

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AO cannot ignore provisions of section 55(2)(b) in computation of indexed cost

Devendra Kumar Shroff Vs ITO (ITAT Kolkata) - Computation of indexed cost of acquisition by the AO, taking the cost of acquisition at the cost price of 15.04.1976 without considering the provisions of section 55(2) clause (b) and taking the base cost inflation index at 406 is bad in law and we direct that Rs. 8,30,000/- must be taken as the cos...

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Date of Award is Date of Accrual of Gains under Section 45 in case of Compulsory Acquisition

Raj Pal Singh Vs CIT (Supreme Court of India) - The issue under consideration is whether the High Court was right in taking the date of award as the date of accrual of capital gains for the purpose of Section 45 of the Act of 1961?...

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Unlisted shares sold before 11.07.2014 eligible for benefit of short holding period

Mrs. Neelu Analjit Singh Vs The Addl. Commissioner of Income tax (ITAT Delhi) - The issue under consideration is Unlisted shares sold after holding for 23 months considered as Long Term Capital Gains or Short Term Capital Gains?...

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Transfer of land held as stock on HUF partition not amounts to conversion into Capital Asset

CIT Vs C. Ramaiah Reddy (Karntaka High Court) - The issue under consideration is whether land held as stock, transferred upon HUF - partition, tantamount to conversion into capital asset for the purpose of imposing a capital gain tax?...

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CBDT issues guidelines on partnership firm taxation | Section 45(4)

Circular No. 14 of 2021-Income Tax - (02/07/2021) - It is noticed that the amount taxed under sub-section (4) of section 45 of the Act is required to be attributed to the remaining capital assets of the specified entity, so that when such capital assets get transferred in the future, the amount attributed to such capital assets gets reduced from the ...

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Section 45(4) | CBDT amends rule 8AA & Inserts Rule 8AB

Notification No. 76/2021-Income Tax - (02/07/2021) - CBDT vide Notification No. 76/2021-Income Tax | Dated: 2nd July, 2021 amends rule 8AA which relates to Method of determination of period of holding of capital assets in certain cases and added rules related to amount which is chargeable to income-tax as income of specified entity under sub­section ...

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section 45’s Popular Posts

Recent Posts in "section 45"

Reinforcing Non-Taxability of Gains Solely due To Forex Fluctuations

Time and again, the income tax authorities are faced with the issue of determining whether a particular receipt is capital in nature and hence exempt from taxation or is a revenue receipt and hence, taxable. This quagmire is attributable to the fact that the Income Tax Act does not stipulate any definition of the term […]...

Read More
Posted Under: Income Tax |

Analysis of Amendment made by Finance Act, 2021 for Section 45(4) & 9B 

Hello friends, here we discussed the provision of transfer of capital asset to partner/member on dissolution or reconstitution of the specified entity [Section 45(4) and section 9B] [W.e.f A.Y. 2021-22]. 1) SECTION 45(4) OF INCOME TAX ACT, 1961 Before Amendment, As per section 45(4), the profits or gains arising from the transfer of a cap...

Read More
Posted Under: Income Tax |

Rationalisation of provision of transfer of capital asset to partner on dissolution or reconstitution

Rationalisation of provision of transfer of capital asset to partner on dissolution or reconstitution Section 45(4) of Income Tax act, 1961 – Newly Substitute provide an another exception of capital gain in the year in which Capital asset received by specified person The existing provisions of section 45 (1) of the Act inter alia, p...

Read More
Posted Under: Income Tax |

A brief description of Section 9B & 45(4) along with rule and guidelines (income tax provision on reconstitution of firm or AOP or BOI)

A brief description of Section 9B & 45(4) along with rule and guidelines (income tax provision on reconstitution of firm or AOP or BOI) The finance act, 2021 introduced a taxation provision on reconstitution of firm, AOP, BOI (Not being a company or a co-operative society). Here, I try to produce the brief of these […]...

Read More
Posted Under: Income Tax |

Reconstitution/Dissolution of firm? Transfer of Assets to partner? | Tax implications

Reconstitution/Dissolution of firm? Transfer of Assets to partner? Wait…..!! Here are the tax implications… Finance Act 2021 has made amendments to the provisions  of the Income Tax Act, pertaining to the tax liability arising on distribution of assets by the firm to its partners on its reconstitution or dissolution.(Note: The words ...

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 |

CBDT issues guidelines on partnership firm taxation | Section 45(4)

Circular No. 14 of 2021-Income Tax 02/07/2021

It is noticed that the amount taxed under sub-section (4) of section 45 of the Act is required to be attributed to the remaining capital assets of the specified entity, so that when such capital assets get transferred in the future, the amount attributed to such capital assets gets reduced from the full value of the consideration and to t...

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Section 45(4) | CBDT amends rule 8AA & Inserts Rule 8AB

Notification No. 76/2021-Income Tax 02/07/2021

CBDT vide Notification No. 76/2021-Income Tax | Dated: 2nd July, 2021 amends rule 8AA which relates to Method of determination of period of holding of capital assets in certain cases and added rules related to amount which is chargeable to income-tax as income of specified entity under sub­section (4) of section 45 under the head [&helli...

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Section 45 not applicable when transfer of property by book entries without a registered deed of conveyance

No transfer of the capital asset within the meaning of section 2(47) of the Income Tax Act , 1961 when a transfer is made by book entries only without a registered sale deed executed in favour of the transferee. as held in CIT vs Kedarnath Poddar & Co., in the Calcutta High Court (1993) 201 […]...

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Posted Under: Income Tax |

Sec 45(4) of Income Tax Act–New Jeopardy for Honest Taxpayers!

We are well aware of the recent rationalization of provisions being made with respect to the transfer of capital asset to a partner on the dissolution or reconstitution of a firm or other Association of Persons (AOP) or Body of Individuals (BOI) (not being a company or a cooperative society) or otherwise....

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Posted Under: Income Tax |

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