Transfer includes compulsory acquisition of a property under any Law. In such cases, settlement of the amount of compensation usually takes a long time. The compensation is initially fixed by the Land Acquisition Officer and is subject to appeal and re-determination by courts. The compensation amount may vary as the case progresses from one authority… Read More »
Capital gains arising on the compulsory acquisition of any land or building forming a part of an industrial undertaking are exempt subject to the following requirements: (adsbygoogle = window.adsbygoogle || []).push({}); Such land or building was used by the assessee for the purpose of industrial undertaking for two years preceding the date of compulsory acquisition,… Read More »
As per Section 10(37), in case of an Individual or Hindu undivided Family, capital gain arising on transfer by way of compulsory acquisition of urban agricultural land is not chargeable to tax from the Assessment year 2005-06 if such compensation is received after April 1, 2004 and the agricultural land was used by the assessee… Read More »
Though under the general law, firm does not have a distinct legal identity apart from its partners, under the Income-tax Act, transfer of a capital asset by the partner to a firm or by a Member of Association of Persons to the Association of Persons (AOP) by way of capital contribution or otherwise is chargeable… Read More »
Whenever any capital asset is converted into stock-in-trade by an assessee, it attracts the provisions of S. 45(2). Capital gain arising from the transfer (conversion) of a capital asset into stock-in-trade shall be charged to tax in the P.Y. in which stock-in-trade is sold or otherwise transferred. The consideration in such case shall be the fair… Read More »
Cost of Improvement mean all expenditure of capital nature incurred in making additions or alterations to the capital asset. However, any expenditure which is deductible in computing the income under the heads Income from House Property, Profits and gains from Business and Profession or Income from other sources (Interest on Securities) would not be taken… Read More »
As per S. 49(1) of the Act , where a capital asset is acquired with or without paying any consideration for the same, then Cost of Acquisition of such asset shall be taken as the cost as was in the hands of the previous owner. where the asset has been inherited by the assessee or gifted… Read More »
Section 49(4) provides that where there is any gain arising out of transfer of a property, the cost of acquisition of such property will be taken as per S. 56(2)(vii) and 56(2)(viia). Therefore it is important to understand S. 56(2)(vii) and 56(2)(viia). Under the existing provisions of S. 56(2)(vii), it provides that, if an assessee being an… Read More »
Transfer as per S. 2(47), of Income tax Act, 1961- Capital Gain arises on transfer of capital asset. The word transfer occupy a very important place in capital gain, because if the transaction involving movement of capital asset from one person to another person is not covered under the definition of transfer there will be no… Read More »
The exemption is available only an individual or a HUF who transfers (or sells) a capital asset that results in a long-term capital gain, and then invests the amount of gain in acquiring a new residential house. This exemption is available subject to fulfillment of the following requirements: (i) The transferor assessee should purchase or… Read More »