Get News Alerts from Taxmann.com on your desktop.
You have blocked the notification on recent updates. Click below to re-subscribe.
No Thanks
You have already subscribed to Taxmann’s notification.
Your Session Will Expire in   seconds.
If you do not wish to log-out, choose 'Let me continue'
Reset Session Cancel Session
 
Commentary
Updated up to The Finance Act, 2016
Search :
35 Records 
WHAT IS CAPITAL GAINS
1.1 Concept of capital gains
1.2 Rationale for taxing capital gains
1.3 Legislative background for taxation of capital gains in India
WHICH INCOME IS TAXABLE UNDER THE HEAD “CAPITAL GAINS”
2.1 Charging sections - Sections 45, 46 and 46A
2.2 Conditions to be fulfilled for taxing capital gains
2.3 Tax-free capital gains
2.4 Whether situs/location of a capital asset matters for taxability of capital gains
WHAT IS ‘CAPITAL ASSET’
3.1 Definition of 'capital asset' in section 2(14) of the Act
3.2 "Property"
3.3 Property held as stock-in-trade is not capital asset
3.4 Consumable stores or raw materials held for business/profession not a capital asset
3.5 Personal effects are not capital assets
3.6 Jewellery is 'capital asset'
3.7 Paintings are capital assets
3.8 Work of art/drawings are capital assets
3.9 Sculptures are capital assets
3.10 Archaeological collections are capital assets
3.11 Immovable property (except stock-in-trade and rural agricultural land) are capital assets
3.12 Silver bars/bullion/sovereigns/silver coins are capital assets and not personal effects
3.13 Silver utensils are personal effects and not capital assets
3.14 Agricultural land situated in india in rural area is not a capital asset
WHAT IS TRANSFER
4.1 Definition of 'transfer' in section 2(47) of the Act
4.2 Meaning of 'transfer'
4.3 Transfer by sale
4.4 Transfer by exchange
4.5 Transfer by relinquishment
4.6 Extinguishment of any rights in a capital asset
4.7 Compulsory acquisition of a capital asset under any law
4.8 Conversion of a capital asset into stock-in-trade
4.9 Part performance of a contract of sale of immovable property
4.10 Transfer of rights in immovable properties through the medium of co-operative societies, companies, etc.
4.11 Transfer by a person to a firm or other association of persons [AOP] or body of individuals [BOI]
4.12 Distribution of capital assets on dissolution
4.13 Distribution of money or other assets by the company on liquidation
4.14 The maturity or redemption of a zero coupon bond
4.15 Family arrangement - Whether transfer
WHICH TRANSFERS DO NOT GIVE RISE TO TAXABLE CAPITAL GAINS
5.1 Transfers which do not give rise to taxable capital gains
5.2 Distribution by a HUF on Total/Partial Partition
5.3 Transfer of capital asset under a gift or a will or irrevocable trust
5.4 Transfers of capital assets between a parent company and its 100% subsidiary company
5.5 Transfer of capital asset by amalgamating company to amalgamated company
5.6/7 Transfer on amalgamation of banking company with a banking institution
5.8 Transfer by demerged company to resulting Indian company
5.9 Transfer of shares by demerged foreign company to resulting foreign company
5.10 Transfer in reorganization of co-operative banks
5.11 Transfer of shares in amalgamation or demerger of Co-operative Banks
5.12 Transfer by a shareholder in a scheme of amalgamation
5.13 Transfer by non-resident of bonds/GDRs
5.14 Transfer of works of art, etc.
5.16 Conversion of FCCBs into shares/debentures
5.17 Transfer of land of sick industrial company
5.18 Succession of firm by company
5.19 Transfer of capital asset by AOP/BOI in course of demutualization/corporatization of stock exchange
5.20 Conversion from general partnership to LLP - Whether gives rise to taxable capital gains
5.21 Transfer of proprietorship to company
5.22 Transfer of membership right in recognized stock exchange
5.23 Conversion of private company/unlisted public company into LLP
5.24 Transfer in a scheme for lending of any securities
5.25 Reverse mortgage transactions by senior citizens - i.e. individuals aged 60 years or more
5.26 Exemption from tax to transfer of govt. security by one non-resident to another - Section 47(viib)
5.27 Taxation of capital gains arising to sponsor on conversion of SPV shares into units of business trust [Section 47(xvii)]
5.28 Tax neutrality on merger of similar schemes of Mutual Funds
5.15 Conversion of bonds, debentures, debenture-stock or deposit certificates into shares or debentures
HOW TO CLASSIFY CAPITAL ASSETS AS SHORT-TERM CAPITAL ASSETS AND LONG-TERM CAPITAL ASSETS
6.1 Classification of capital asset into short-term capital asset and long-term capital asset
6.2 How to compute the holding period of a capital asset
YEAR OF TAXABILITY OF CAPITAL GAINS
7.1 Introduction
7.2 Insurance claim
7.3 Conversion of asset into stock-in-trade
7.4 Transfer by depository or participant of beneficial interest in securities
7.5 Transfer of assets by way of capital contribution
7.6 Distribution of assets on dissolution of Firm/AOP/BOI or otherwise
7.7 Compulsory acquisition
7.8 Enhanced compensation on compulsory acquisition
7.9 Entitlement to goodwill
7.10 Transfer by partner of right in firm's asset for consideration payable in instalments
7.11 Accrual of right to receive profits determinative
7.12 Sale of part of asset
COMPUTATION OF CAPITAL GAINS - SHORT-TERM CAPITAL GAINS AND LONG-TERM CAPITAL GAINS
8.1 Tax incidence depends upon whether capital gains is long-term capital gains or short-term capital gains
8.2 Methodology of computation of short-term capital gains
8.3 Methodology of computation of long-term capital gains
HOW TO COMPUTE FULL VALUE OF CONSIDERATION
9.1 Existence of consideration - a prerequisite for taxability as capital gains
9.2 'Consideration'
9.3 Full value of consideration
9.4 Fair market value
9.5 Computation of capital gains in real estate transactions - Section 50C
9.6 Conversion by the owner of a capital asset into, or its treatment as, stock-in-trade of a business carried on by him [Section 45(2)]
9.7 Contribution of capital asset to firm/LLP/AOP/BOI by partner/member - Section 45(3)
9.8 Distribution of capital assets on dissolution of firm/LLP/AOP/BOI - Section 45(4)
9.9 Compulsory acquisition under any law for the time being in force - Section 45(5)
9.10 Insurance claim received in respect of capital asset destroyed by act of god etc. - Section 45(1A)
9.11 Transfer by way of distribution of assets by company in liquidation to its shareholders - Section 46(2)
9.12 Where the consideration is not ascertainable or cannot be determined
WHAT IS EXPENDITURE ON TRANSFER OF CAPITAL ASSETS
10.1 Cost of Transfer
10.2 Expenditure excluded from definition of cost of transfer
10.3 Legal expenses incurred for obtaining Compensation for compulsory acquisition
10.4 Expenditure incurred for obtaining probate of the will
10.5 Transfer charges paid to co-operative society
10.6 Expenditure incurred before or after passing of title
10.7 Liability/obligation
10.8 Interest on provident fund loan
10.9 Damages for mental agony and suffering
10.10 Expenses on staff after the takeover of undertaking
10.11 Amount paid for getting land acquired by Government
10.12 Where option under section 55(2)(b)(i) is exercised
10.13 Payment for freeing property of encumbrance
10.14 Payment for release of interest
10.15 Brokerage
10.16 Assumed value of solatium
10.17 Amount embezzled
10.18 Interest on delayed payment of unearned increase
WHAT IS COST OF ACQUISITION
11.1 Meaning/definition of cost of acquisition
11.2 Ground rent - Whether deductible as COA
11.3 Interest on moneys borrowed to purchase asset - Whether deductible as COA
11.4 Interest paid to partners - Whether COA
11.5 Payment to estate of deceased partner - Whether COA
11.6 Litigation expenses to register transfer of shares is COA of shares
11.7 Payment having no connection with the capital asset
11.8 Agricultural land becoming capital asset by notification - How COA to be computed
11.9 Income-tax dues - Whether COA
11.10 Sums paid under will - Whether COA
11.11 Urban land tax and other taxes - Whether COA
11.12 Cost of acquisition of shares obtained in family settlement
11.13 Subsequent events do not affect cost of acquisition
11.14 Date of acquisition
11.15 COA where asset becomes capital asset after acquisition but before sale
11.16 Cases in which the Act deems cost of acquisition of capital asset to be nil
11.17 Cases in which cost of acquisition deemed to be cost to the previous owner
11.18 Cost of acquisition of shares of amalgamated company in exchange for shares of amalgamating company - Section 49(2)
11.19 Cost of shares/debentures acquired on conversion of bonds/debentures/deposit certificates/FCCBs into shares/debentures - Section 49(2A)
11.20 Cost of acquisition of ESOPs/sweat equity shares - Section 49(2AA)/section 49(2AB)
11.20A Cost of acquisition in case of unit of business trust acquired by sponsor in exchange for shares in SPV
11.21 Cost of acquisition of shares in the resulting company in a demerger and cost of original shares in demerged company
11.22 Cost of acquisition of intangible assets purchased
11.23 Capital asset acquired by a shareholder on distribution of its assets in liquidation - Section 55(2)(b)(iii)
11.24 Cost of acquisition of bonus shares
11.25 Where conditions for exemption of transfers between parent and its 100% subsidiary are violated subsequently
11.26 Cost of acquisition of shares acquired on stock-splits etc.
11.27 Cost of acquisition of rights shares
11.28 Cost of acquisition of capital asset acquired before 1-4-1981
11.32 Cost of acquisition in case of slump sale - Section 50B
11.33 Where enhanced compensation is received
11.34 Cost of acquisition of certain assets - Calves, colts, trees etc.
11.35 Shares acquired by non-resident assessee on redemption of GDRs
11.36 Tax neutrality on merger of similar schemes of Mutual Funds
11.29 Cost of acquisition of immovable property taxed as gift
11.30 Cost of acquisition of jewellery, bullion, shares and securities, paintings, sculptures etc. taxed as gifts under section 56(2)(vii)/(viia)
11.31 Cost of acquisition in case of depreciable assets on which depreciation allowed at SLM rates - Section 50A
WHAT IS COST OF IMPROVEMENT
12.1 Cost of improvement - Definition
12.4 Improvement of title
12.5 Asset acquired before 1-4-1981
12.6 Assets acquired after 1-4-1981
12.7 Valuation of assets
12.2 Allowance of deduction
12.3 Expenses incurred by persons other than assessee
WHAT IS INDEXED COST OF ACQUISITION AND INDEXED COST OF IMPROVEMENT
13.1 Indexation benefit for computing long-term gains - Relief from inflation
13.2 No indexation benefit for non-residents
13.3 Aggregation of receipts on last day of accounting year
13.4 No indexation benefit for bonds and debentures
13.5 Indexed cost of acquisition/improvement - Meaning of
13.6 Indexation benefit linked to period of holding of asset and not to its owner
13.7 Cost inflation index
13.8 Computation of indexed cost of acquisition/improvement
ROLLOVER DEDUCTION IN RESPECT OF PROFIT ON SALE OF PROPERTY USED FOR RESIDENCE [SECTION 54]
14.1 Profit on sale of property used for residence [Section 54]
14.2 Sale of new residential house within 3 years
14.3 Buildings or land appurtenant thereto
14.4 Sale of independent residential unit forming part of a larger house - Whether eligible for deduction under section 54
14.5 'Purchase' - Meaning of
14.0 Provisions of section 54 in a nutshell
14.6 Where house is partly purchased and partly constructed
14.7 Construction of new house
14.8 Nexus to sale proceeds
14.9 Whether deduction available if assessee constructs/purchases more than one house
14.10 Where assessee does not own land on which new house is constructed
14.11 Sale of land gifted to spouse
14.12 Purchase of new property in name of spouse
14.13 Where property purchased is partly non-residential
14.14 Acquisition of fraction of ownership - Whether eligible for deduction under section 54
14.15 Capital Gains Accounts Scheme
14.16 Extension of time for acquiring new asset or depositing or investing capital gain [Section 54H]
DEDUCTION OF ROLLOVER OF GAIN ON TRANSFER OF LAND USED FOR AGRICULTURAL PURPOSES [SECTION 54B]
15.1 Gain on transfer of land used for agricultural purposes
15.2 Quantum of deduction under section 54B
15.3 Sale of new land within 3 years
15.4 Who can claim the exemption under section 54B
15.5 User of land for agricultural purposes in two years immediately preceding transfer
15.6 Whether new land purchased should be in assessee's name only to qualify for section 54B deduction
15.7 Purchase of new land before sale of old land
15.8 Capital Gains Accounts Scheme
15.9 Extension of time for acquiring new asset or depositing or investing capital gain
15.0 Provisions of section 54B in brief
ROLLOVER DEDUCTION IN RESPECT OF CAPITAL GAIN ON COMPULSORY ACQUISITION OF LANDS AND BUILDINGS [SECTION 54D]
16.1 Capital gain on compulsory acquisition of lands and buildings
16.2 Quantum of deduction
16.3 Tax implications on sale of new asset within 3 years
16.0 Provisions of section 54D in a nutshell
16.4 Who can claim the exemption under section 54D
16.5 Industrial undertaking - Meaning of
16.6 Enhanced compensation
16.7 Exemption in case of depreciable assets
16.8 Capital Gains Accounts Scheme
16.9 Extension of time for acquiring new asset or depositing or investing capital gain
ROLLOVER DEDUCTION IN RESPECT OF INVESTMENT OF CAPITAL GAINS IN SPECIFIED BONDS [SECTION 54EC]
17.1 Pre-conditions for deduction under section 54EC
17.2 Ceiling on investment - Rs. 50 lakhs in a financial year
17.3 Transfer of specified asset within 3 years
17.4 Whether capital gains arising under section 50 is long-term capital gains for section 54EC purposes
17.5 Time-limit of 6 months for investment in specified bonds under section 54EC
17.0 Provisions of section 54EC in a nutshell
17.6 Name in which bonds should be purchased
17.7 Specified bonds for investment under section 54EC
17.8 Direct nexus not required
17.9 Extension of time for acquiring new asset or depositing or investing capital gain
DEDUCTION IN RESPECT OF LONG TERM CAPITAL GAIN INVESTED IN RESIDENTIAL HOUSE [SECTION 54F]
18.0 Provisions of section 54F in brief
18.1 Long term capital gain invested in residential house
18.2 Conditions for deduction
18.3 Quantum of deduction
18.4 Net consideration
18.5 Purchase/construction of second residential house
18.6 Date of purchase of new house
18.7 Sale of second vacant land and investment in second dwelling unit
18.8 Exemption for minor
18.9 No deduction for extension of house
18.10 Transfer of new residential house
18.11 Whether deduction is available if new house purchased in joint names of assessee and his wife
18.12 Capital Gains Accounts Scheme
18.13 Extension of time for acquiring new asset or depositing or investing capital gain
TAX INCENTIVES FOR TRANSFER OF ASSETS ON SHIFTING OF INDUSTRIAL UNDERTAKINGS FROM URBAN AREA/SHIFTING OF INDUSTRIAL UNDERTAKING FROM URBAN AREA TO ANY SPECIAL ECONOMIC ZONE (SEZ) [SECTION 54G/54GA]
19.0 Provisions of section 54G/54GA in brief
19.1 Transfer of assets on shifting of industrial undertakings [Section 54G]
19.2 Conditions for deduction under section 54G
19.3 Quantum of deduction under section 54G
19.4 Sale of new asset within three years-tax implications
19.5 Shifting of industrial undertaking from urban area to any special economic zone (SEZ) [Section 54GA]
19.6 Capital Gains Accounts Scheme
TAX INCENTIVES FOR INVESTMENT IN CAPITAL OF A SMALL OR MEDIUM ENTERPRISE UNDER NEW SECTION 54GB
20.1 Introduction
20.2 Conditions to be satisfied for availing the rollover relief under new section 54GB
TAX COMPUTATION IN RESPECT OF LTCG AND STCG
21.1 Tax on short-term capital gains
21.2 Tax on long-term capital gains from shares, securities and units
21.3 Tax on long-term capital gains other than from shares, securities and units
21.4 Concessional tax rate of 10% not applicable to long-term capital gains from units of GETFs/Debt-oriented mutual funds - Section 112(1
21.5 Tax on short term capital gain in case of units of business trusts [Section 111A
REFERENCE TO VALUATION OFFICER
22.1 Statutory provisions
22.2 Valuation Officer
22.3 Valuation procedure
22.4 Purpose for which reference may be made
22.5 Binding nature of Valuation Officer's report
22.6 Where assessment is completed before receipt of valuation report
22.7 Where valuation report is not received
22.8 Reference after assessment
22.9 Reference cannot be made without giving opportunity and disclosing reasons
22.10 Second reference
22.11 Appeal
22.12 Appearance by registered valuer
22.13 Rectification of mistakes
22.14 Power to take evidence on oath, etc.
LOSS UNDER THE HEAD CAPITAL GAINS
23.1 Loss under the head 'Capital gains' - Whether same as capital loss
23.2 Carry forward and set-off of losses under the head 'Capital gains'
23.3 On Liquidation of Company
23.4 Revaluation of Investment
23.5 Where transaction of sale is genuine
23.6 Sum assessed as dividend under section 2(22)
23.7 Carry forward and set off
DISTRIBUTION OF ASSETS BY COMPANIES IN LIQUIDATION
24.0 Introduction
24.1 Coverage of section 46(2)
24.2 Nature of asset in the hands of shareholders
24.3 Liquidation of subsidiary company and application of section 46
24.4 Realisation of asset by liquidator
24.5 Distinction between 'a company in liquidation' and 'a company on liquidation'
24.6 Section 46(2) - A deeming provision
24.7 Section 46(2) is a charging provision
24.8 Liability to capital gains
HOW TO COMPUTE CAPITAL GAINS IN CASE OF BUYBACK OF SHARES/SPECIFIED SECURITIES
25.1 What is buy-back
25.2 Tax implications of buy-back for shareholder - Section 46A
25.3 Analysis of section 46A
25.4 Where buy-back held to be disguised dividends
25.5 Withholding tax of 20% of profits distributed by unlisted companies introduced by the Finance Act, 2013 w.e.f. 1-6-2013
CAPITAL GAIN AND DEPRECIABLE ASSETS
26.2 Statutory provisions of section 50
26.3 Power generation undertakings [Section 50A]
26.4 Legal decisions - In assessee's favour
26.5 Legal decisions - In Revenue's favour
26.1 Introduction
SLUMP SALE
27.1 Introduction
27.2 Slump sale - Definition
27.3 Computation of capital gain from slump sale [Section 50B]
27.4 Negative Net Worth
27.5 Complete sale of unit or undertaking is a must
27.6 Lock, stock and barrel sale
27.7 Comparative study of slump sale and demerger
27.8 Audit certificate in Form No. 3CEA
27.9 Analysis of requirements of Form 3CEA
CAPITAL GAIN ON INTANGIBLE ASSETS
28.1 Introduction
28.2 Goodwill
28.3 Route permits/stage carriage permits
28.4 Import licences/entitlements
28.5 Rights under a contract
28.6 Tenancy rights
28.7 Loom hours
28.8 Leasehold rights
28.9 Life interests
28.10 Remainderman's reversionary interest
28.11 Devaluation gain
28.12 Patent
28.13 Right to manufacture, produce or process any article or thing
CHARITABLE TRUST AND CAPITAL GAINS
29.1 Introduction
29.2 Trust wholly for charitable or religious purposes [section 11(1A)(a)]
29.3 Trust in part for charitable or religious purposes [Section 11(1A)(b)]
29.4 Capital gains kept in fixed deposit in bank
29.5 Capital gain kept as deposit in public sector companies
29.6 Capital gain used for redeeming pledged asset
29.7 Capital gain used for acquiring English Mortgage
29.9 Time limit for reinvestment
29.10 New sub-section (7) of section 11
29.8 Advance receipt of sale proceeds used for regular objects
CAPITAL GAIN IN REAL ESTATE TRANSACTIONS
30.1 Introduction
30.2 Immovable property
30.3 Immovable property transactions between firm/LLP and partners
30.4 Membership of Co-operative Society
30.5 Mortgage transactions
30.6 Agricultural land
30.7 Deemed transfers
30.8 Deemed sale consideration - Section 50C
30.9 Section 50C vis-a-vis transfers under section 45(2), 45(3) and 45(4)
30.10 Exemptions under sections 54, 54EC and 54F
30.11 Development agreements
30.12 Power of authority giving full rights
30.13 Unregistered MOU with builder
30.14 No possession and revocable POA
30.15 Where transfer is complete on agreement
30.16 Lease right
30.16A 99 years lease
30.17 Sub-lease for 97 years
30.18 Composite consideration
30.19 Single transaction - Whether business
30.20 Joint venture
30.21 Possession and general POA to developers
30.22 Repurchase of sold property
30.23 Mortgage followed by sale
30.24 Where auction sale is set aside
30.25 Taxation regime for REITs and InVITs*
30.26 Real Estate Investment Trusts (REITs)
30.27 Infrastructure Investment Trust (InVIT)
30.28 Income-investment model of REITs and InVITs
30.29 Taxation regime introduced by the Finance (No. 2) Act, 2014 for REITs and InVITs
30.30 Definition of 'business trust'
30.31 Taxation of business trusts
30.32 STT levy on transactions in units of a business trust
30.33 Taxation of income in the hands of unit holder
30.34 Taxation of capital gains arising to sponsor on conversion of SPV shares into units of business trust
30.35 No TDS on interest income payable by SPV to business trust
30.36 Lower withholding tax rate of 5% on interest income in case of ECBs by business trust
ALTERNATIVE INVESTMENT FUNDS
30A.1 Backdrop
30A.2 New Special tax regime for AIFs
30A.3 Taxation of income of investment fund
30A.4 Taxation of unit holder
NON-RESIDENTS
31.1 Introduction
31.2 No indexation benefit for non-residents in case of shares/debentures
31.3 Exemptions
31.4 Legal decisions
31.5 Transfer of shares by amalgamating foreign company to amalgamated foreign company
31.6 Units purchased in foreign currency
31.7 Capital gain on transfer of global depository receipts purchased in foreign currency
31.8 Capital gain in the case of foreign institutional investors [Section 115AD]
31.9 Non-residents referred to in Chapter XII-A
31.10 Meaning of the terms used
31.11 Working of the Chapter XIIA
31.12 Return of income not required to be filed in certain cases
POWER OF CBDT TO RELAX ANY REQUIREMENT FOR CLAIMING DEDUCTIONS
32.1 Power of CBDT under section 119(2)(c)
32.2 Section 119(2)(c) applies to sections 54 to 54GB
32.3 Application for relief on plain paper
100 PLUS TAX PLANNING IDEAS
100 Tax Planning Ideas
APPENDICES
APPENDIX 1 RELEVANT SECTIONS OF INCOME-TAX ACT, 1961
APPENDIX 2 RELEVANT SECTIONS OF WEALTH-TAX ACT, 1957
APPENDIX 3 GIST OF RELEVANT CIRCULARS
APPENDIX 4 RELEVANT SECTIONS OF TRANSFER OF PROPERTY ACT, 1882
APPENDIX 5 VICINITY OF URBAN AREAS NOTIFIED UNDER PROVISO (ii)(B) TO SUB-CLAUSE (c) OF CLAUSE (1A) FOR THE PURPOSES OF EXEMPTION OF INCOME FROM AGRICULTURAL HOUSE PROPERTY
APPENDIX 6 REVERSE MORTGAGE SCHEME, 2008
APPENDIX 7 CAPITAL GAINS ACCOUNTS SCHEME, 1988
APPENDIX 8 TAXABILITY OF UNUTILISED DEPOSIT UNDER THE CAPITAL GAINS ACCOUNTS SCHEME, 1988 IN THE HANDS OF THE LEGAL HEIRS OF THE ASSESSEE
APPENDIX 9 RELEVANT RULES OF INCOME-TAX RULES, 1962
APPENDIX 10 SECURITIES AND EXCHANGE BOARD OF INDIA (INFRASTRUCTURE INVESTMENT TRUSTS) REGULATIONS, 2014
APPENDIX 11 SECURITIES AND EXCHANGE BOARD OF INDIA (REAL ESTATE INVESTMENT TRUSTS) REGULATIONS, 2014