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Capital Gain

Cost Inflation Index Up to 2011-12 [Updated: June 2011]

For computing long-term capital gains, ‘indexed cost of acquistion’ and ‘indexed cost of imporvement’ are required to be deducted from the full value of consideration of the capital asset. Both these costs are thus required to be indexed with respect to the cost inflation index pertaining to the year of transfer. Cost Inflation Index from 1981-82 to 2011-12 FINANCIAL YEAR COST INFLATION INDEX FINANCIAL YEAR COST INFLATION INDEX 1981-82 100 1982-83 109 1983-84 116 1984-85 .....

Cost Inflation Index for F.Y. 2011-12 is 785

NOTIFICATION NO. 35/2011 [F. NO. 142/5/2011-TPL] – Dated: 23-6-2011 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O. 709(E), dated the 20th August, 1998, namely :— In the said notification .....

Capital Gains from transfer of shares held by Mauritian company not taxable in India

The event of advance ruling has been subject to a lot controversies where the most of the times international transaction has been the subject matter. The struggle to form a single opinion has been difficult to come by and has only resulted in disputes between the assessee and the department. But finally, there has been some equity in opinion of both the parties. The AAR (Authority for Advance Ruling) has finally declared that capital gains .....

Capital Gain Tax Exemptions on Inheritance Property

Capital gain is a term used to denote any profit or gain arising to an assessee from shift of ownership of a capital asset. This capital profit or gain is taxable under the income tax and needs to be cleared on such assessment year. The incidence of taxation takes place on the time on which the transfer deed was executed and hence becomes due from that very day. But this taxation policy is subject to .....

Cost Inflation Index f.y 2010-11 Notified

The CBDT has issued a Notification on Cost Inflation Index 2010-11. The same is reproduced below for your ready reference: NOTIFICATION NO 59/2010,Dated: July 21, 2010 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board .....

At What Rates Capital Gains is Taxed?

Long term capital gains tax from the sale of equity shares or units of equity oriented mutual funds which are subject to securities transaction tax (STT) is totally exempt u/s 10(38), Short-term capital gain arising from such equity shares or units, which are subject to securities transaction tax (STT) shall be taxes at concessional rate of 15% u/s 111A w.e.f. A.Y. 2009-10 The rate was 10% for such STCHG during 1.10.2001 to 31.03-.2008 in some .....

What is Capital Gains Tax? Computation of Capital Gains Tax

Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head ‘Capital Gains’. And shall be deemed to be the income of the previous year in which the transfer took place. Capital gain is chargeable to tax on accrual basis. Kinds of Capital Gains “Short-term capital gains” gains arising from the transfer/sale of a capital asset held by an assessee for .....

Capital Gain Tax on Agricultural Land

As, I earlier discuss in article when an agricultural land is capital asset or not, that is the first step to calculate capital gain tax on agricultural land. So, if Agricultural land not forming part capital asset and sale of which will attract capital gains tax subject to exemption under Section 54B, which is explained below. Section 54B – Capital gain on transfer of land used for agricultural purposes not to be charged in certain .....

Factors Determine when an Agricultural Land is Capital Asset or Not

Any Profit or gain arising from the transfer of a capital asset is chargeable to tax under the head Capital Gains. In the previous article, we had discussed about the basic concept of capital gains and capital assets. In this article, we will cover only the topic of agricultural land. Most of us consistently puzzle to decide whether a particular land is agricultural or not. This is the leading subject to understand while calculating the capital .....

Capital Gains Guide: Basic Concepts

It is very important to understand the provision of capital gain taxes, if you desires to have effective tax planning of the capital gains. In this article we will discuss about the basic concepts that p lay vital role to determine short-term capital gain and long term capital gain like what is capital asset, types of capital assets, how to find short-term and long-term capital gain, holding period for determining short-term or long-term capital gain. .....

Capital Gain Exemption u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA Table

Capital Gain Exemption u/s 54, 54B, 54D, 54EC, 54F, 54G, 54GA Table. The following table is all about capital gain exemption, under what section you can avail it, Conditions to be satisfied, quantum of exemption. You can calculate capital gain tax exemption easily with the help of following table. See: The Basic concepts of Capital Gain Tax Under Section Allowed Assessee Conditions to be satisfied Quantum of exemption 54 Individual/HUF 1. Transfer should be of .....

Capital Gains exemption u/s 54F: Capital Gain on Transfer of Asset, other then a Residential House (Sec. 54F)

How to Minimize Capital Gain Part – II: Capital Gains from an Asset other than Residential House – Capital Gain Exemption (Sec. 54F) IntroductionAny long-term capital gain arising to an individual or an HUF, from the transfer of any asset, other than a residential house, shall be exempt if the whole of the net consideration is utilised within a period of one year before or two years after the date of transfer for purchase, or .....

Capital Gain Exemption u/s 54: Capital Gains from Transfer of a Residential House

How to minimize Capital Gain Part – 1: Capital Gain from Transfer of a Residential House-Exemption of Capital Gains u/s 54 IntroductionAny long-term capital gains arising on the transfer of a residential house (including self-occupied house) will be exempt from tax if, Conditions1) If the assessee has within a period of one year before or two years after the date of such transfer purchased, or within a period of three years constructed, a residential house. .....

Capital Gain Account Scheme

Why I Open Capital Gain Account Scheme?Capital Gain Account Scheme especially for those person who has earned capital gain. This scheme’s main purpose is to temporarily save the unutilised amount of capital gain up to its utilisation as per time specified in particular section. The scheme is open to all tax payers who wish to claim exemption u/s 54, 54D, 54F, 54G, 54GA.Types of Capital Gain Saving AccountThere are two types of accounts for depositing .....