“Cost of Improvement” means all expenditure of capital nature incurred in making additions or alterations to the capital asset after the 1st day of April, 1981, where the capital asset became the property of the previous owner or the assessee before the said date. However, any expenditure which is deductible in computing… Read More »
Income Tax Assessing Officer can refer the matter of valuation to Valuing officer to ascertain the fair value of a capital asset under section 55A of Income Tax Act. (adsbygoogle = window.adsbygoogle || []).push({}); AO can refer the property to valuer if AO believes that value of assets claimed by Assessee is less than fair… Read More »
Exemption from Capital Gain under Income Tax on Profit on Sale of Property used for Residence Section 54 of the Income Tax act deals with the exemption from capital gain arising on sale of property used for residential purpose (Self Occupies or Rented) by Individual and HUF. Amount of Exemption or Exemption from capital Gain… Read More »
As Per Income Tax Act, 1961 “Income to include transfer of shares in case of recipient firms and companies” includes: where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1st day of June, 2010, any property, being shares… Read More »
Advance money forfeited till FY 2013-14 i.e. for AY 2014-15 related to capital asset/property for which negotiation for transfer was going on will be treated as capital receipt and will be reduced from the cost of acquisition of assets, but with effect from the 1st day of April, 2015 any advance money forfeited against capital assets… Read More »
Meaning and Calculation of Cost of Acquisition under Income Tax Act for Capital Gain Calculation Cost of Acquisition is the total amount spent for acquiring the asset. Where the asset was purchased, the cost of acquisition is the amount paid to acquire it. Where the asset is acquired by way of exchange, the cost is the… Read More »
Last 34 Years Chart of Cost of Inflation Index for Capital Gain Calculation: updated till 2014-15. Central Board of Direct Taxes has issued the CII for Financial Year 2014-15 through notification is 1024. COST OF INFLATION CHART FOR 34 YEARS FROM 1981-82 to 2014-15 Fin. Year Index Fin. Year Index 1981-82 1982-83 1983-84 1984-85 1985-86… Read More »
Check the Cost of Inflation Index from 1981-1982 to 2015-2016 for Calculating Capital Gain under Income Tax Act. Central Board of Direct Taxes has issued the Notification No 60 dated 24 July 2015 for New inflation index for FY 2015-16. If tax payer has done any capital transaction in FY 2015-16 i.e AY 2016-17 then… Read More »
Income Tax has given the exemption from capital gain under section 54G for transfer of capital assets from urban area to non urban area for industrial undertaking . This exemption is available to an individual, HUF, company or any other person who transfers the capital assets (being plant, machinery, land or building or any right… Read More »