Rate of tax on Short-Term Capital Gains Section 111A Where there are capital gains arising from the transfer of short-term capital asset, being an: Equity share listed in a recognized stock exchange; Units of equity-oriented funds or; A unit of a business trust. The transaction of sale is chargeable to securities transaction tax (STT). Such … Continue reading “Rate of tax on Short-Term Capital Gains Section 111A”
Capital Gains in case of Joint development agreements – Section 45(5A) It is a common procedure nowadays and a win-win situation for both the parties i.e., the land owner and the developer to enter into Joint Development Agreement. Herein, the resources and the efforts of the landowner and the developer are combined together so as … Continue reading “Capital Gains in case of Joint development agreements Section 45(5A)”
Capital Gains in case of Compulsory Acquisition of an asset Section 45(5) What is compulsory acquisition? Compulsory acquisition means, where the government acquires rights in the land, property from an individual or business in order to benefit society such as constructing roads, rails, metros, infrastructure etc. With reference to Section 45(5) In some … Continue reading “Capital Gains in case of Compulsory Acquisition of an asset Section 45(5)”
Long Term and Short-Term Capital Gains People these days are more involved in purchase and sale of properties. The profit or gain arising from sale of these capital assets such as house property, land, buildings shares, bonds, jewelry during a financial year will be charged under the head “income from capital gains”. … Continue reading “Long Term and Short-Term Capital Gains”
What is Transfer – Section 2(47) With reference to Section 2(47) transfer in the terms of capital gains The Sale, exchange or relinquishment (giving up the right of an asset) of the asset. The extinguishment of any rights therein; For e.g., Mr. Raj had a property in Delhi, it got destroyed due … Continue reading “What is Transfer – Section 2(47)”
Capital Gains on Conversion of Capital Asset into Stock-In-Trade Section 45(2) What is Stock-In-Trade? The goods kept in hand by a business for the purposes of its trade. For example, a person dealing in electronic items such as laptop, printers, computers will be his stock-in-trade. With reference to Section 45(2) At the time … Continue reading “Capital Gains on Conversion of Capital Asset into Stock-In-Trade Section 45(2)”
Capital Gains in Case of Insurance claim on damage of Capital asset Section 45(1A) What is an insurance claim? An insurance claim is a formal request by a policyholder to an insurance company for compensation for a covered loss. The insurance company validates the claim (or denies the claim). If approved, payment to insured … Continue reading “Capital Gains in Case of Insurance claim on damage of Capital asset – Section 45(1A)”
What are Capital Assets? – Section 2(14) Do you know everyone is surrounded by capital assets; the only thing is we need to identify them? Don’t worry take a deep breath, look around, the place where you are sitting right now, and reading this article can also be your capital asset. In simple words your … Continue reading “What are Capital Assets? – Section 2(14)”
What is Capital Gain? Section 45(1) People these days are more involved in sale & purchase of properties. The profit or gain arising from sale of these capital assets such as house property, land, buildings shares, bonds, jewelry during a financial year will be charged under the head “income from capital gains”. For e.g., … Continue reading “What is Capital Gain? Section 45(1)”
Treatment of Income from Co-Owned Property Section 26 What is Co-Ownership? When a house property is jointly owned by one or more persons then each joint owner is known as co-owner. In a similar manner, Co-ownership means where a single house property is owned by more than one person. In India, it is very … Continue reading “Treatment of Income from Co-Owned Property Section 26”
