Capital Gain arising in case of dissolution of partnership firm by way of transfer of a capital asset by way of distribution of capital asset to partners on dissolution or “otherwise” as Per S. 45(4) of Income Tax Act. As per S. 45(4) of the Income Tax Act where any partnership firm or AOP or BOI is dissolved and… Read More »
ITR-4S Form: SUGAM (adsbygoogle = window.adsbygoogle || []).push({}); The SUGAM ITR-4S is a Form used by a certain section of Tax Assessees while filing their Income Tax Returns in India. The process of filing Tax Returns in the Indian subcontinent is done through various types of ITR and other Forms. The SUGAM ITR-4S Form is a Presumptive Income… Read More »
ITR-1 Form: SAHAJ—Income Tax Return Form for Salaried Persons The SAHAJ ITR-1 form is an essential Income Tax Return form for Indian citizens filing their tax returns with the Income Tax Department. The Income Tax Act, 1961, and the Income Tax Rules, 1962, obligates citizens to file returns with the Income Tax Department at the end of every financial year. These returns should be filed… Read More »
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: Such land or building was used by the assessee for the purpose of industrial undertaking for two years preceding the date of compulsory acquisition, The assessee has purchased any… 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 »