Any Capital asset held by the Assessee for 36 months would be termed as Long-term capital asset and any gain arising on account of such sale thereof would constitute a long-term capital gain. As per the ActShort term Capital asset is defined as the capital asset held by an assessee for not more than thirty six… Read More »
A long-term capital asset means a capital asset held by an individual for more than 36 months immediately preceding its date of transfer. However, the following are treated as long-term capital assets, if held for more than 12 months: • Shares held in a company; • Other securities listed in a recognized stock exchange in… Read More »
Short-term capital assets are capital assets which are held by an assessee for less than thirty six months immediately preceding the date of its transfer. In case of shares, debentures, Units of Unit Trust of India and Mutual funds, the term would reduce to twelve months instead of thirty six months. As per S. 2(42A)… Read More »
Short-term capital gain is the gain arising out of short-term capital assets. i.e. assets which are held for less than thirty six months and in case of shares, debentures, bonds, a period less than twelve months. Short-term capital gain Computation: Particulars Amount (in Rs.) Sale Consideration Less: Cost of Acquisition … Read More »
Computation of capital gain depends upon the nature of capital assets transferred, viz., short-term capital asset or long-term capital asset. The tax incidence is generally higher in the case of short-term capital gain as compared to long-term capital gain. S. 48 determines the method of computing Capital gains. Capital gain can be computed by deducting… Read More »
Adoption, Treatment of stamp duty for transfer of land or building or both under Income Tax Act, 1961 during capital gain. The provisions of S. 50C of Income tax Act, 1961 specifically deals with transactions in immovable properties. It deals specifically about gross consideration in computation of capital gains in respect of transactions in land… Read More »
Interest received by an assessee on compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year (after reducing standard deduction @ 50% of income as per S. 57(iv) of the Income Tax Act, 1961 in which it is received. Such interest shall be taxable under the… Read More »
There are certain transactions which are not considered as transfers even though there is any transfer of property for the purpose of computation of capital gains. Few transactions are: Any distribution of capital assets on the total or partial partition of a HUF transfer of a capital asset under a gift or will or an… Read More »
As per S. 51 of the act provides that any advance forfeited by the seller of a property is deductible from the cost of the asset. The effect of this provision is that when the same asset is sold at a larger amount. It becomes taxable as capital gains because of the original cost reduced… Read More »
As per S. 64(2) a gift by a member of a Hindu Undivided Family after 31-12-1969 would attract Clubbing of Income in the hands of the member and as such the income from the converted property shall be deemed to arise to the individual & not to the family. It means that when an asset is brought… Read More »