Capital Gain

  • Capital gains exemption u/s 54EC of Income tax Act, 1961

    Section 54EC of Income Tax Act, 1961 provides an option to save tax on capital gain arising from transfer of long term capital asset subject to fulfillment of certain conditions. Provisions of section 54EC are being discussed hereinbelow for the benefit of all concerneds.

    Circumstances under which deduction u/s 54EC is available: The deduction u/s 54EC will be available subject to the following conditions:

    The asset

  • Capital Gain - Exemption u/s 54 and Deposition in capital gain scheme account

    Capital Gain Exemption & Capital Gain Account Scheme

    Sec. 54 (2) of the Income Tax Act provides as under:

    “The amount of the capital gain which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilized by him for the purchase or construction of the new asset before the date of furnishing

  • All about Capital Gain exemption under section 54 & 54 F

    If an individual transfers any long term capital asset and plans to reinvest the sale proceeds in a new residential house property then he is eligible to claim exemption u/s 54 and 54F to reduce his tax liability.


    Still there are many doubts and confusion abouts its applicablity under various circumstances, conditions, etc.

  • Capital Gains summary

    Today very few people might have not known the word Capital Gains Tax. Section 45 of the Income Tax Act, 1961 deals with taxability of capital gains. Section 45 says that any profits & gains arising from the transfer of capital asset effected in the previous year is taxable as capital gain. In this topic, two terms are important, one is capital gain and other is transfer. This capital gain is nothing but the

  • Analysis ON CAPITAL GAIN By Twinkle Dixit


  • Recent Decisions on Capital Gains as reported

    Reported in (2012) 52 SOT 327 (Mum.) (Trib.)


    The assessee earned capital gain from sale of ancestral property. The assessee claimed exemption u/s 54F in respect of amount invested towards purchase of four flats which were converted into one residential unit. The AO allowed exemption only in respect one flat by holding

  • Capital Gains Account (First Amendment) Scheme, 2012

    In exercise of the powers conferred by sub-section (2) of section 54, sub-section (2) of section 54B, sub-section (2) of section 54D, sub-section (4) of section 54F, sub-section (2) of section 54G and sub-section (2) of section 54GB of the Income-tax Act, 1961 (43 of 1961) the Central Government hereby makes the following Scheme to amend the Capital Gains Account Scheme, 1988. namely:-



    1. (1) This

  • Issues in Cost of Acquisition for Capital Gains Computation By V.K. Subramani



    For computing capital gains on transfer of short term or longterm capital asset, the basic requirement is to know the “cost of acquisition”. Pre-requisites for

  • FAQ on Capital Gains Tax and Capital Gains Exemption

    Q1. What is Capital Gain?

    A1:A capital gain is a profit that results from a disposition of a

  • Capital gains taxability in the hands of NRIs

    The basic tax rates for investments in Mutual Funds are the same, whether the assesse is an NRI or an ordinary Indian citizen.

  • Taxability of Investment in Shares and Mutual Funds

    Tax Treatment on Income from Investment in Shares: -

    Investment in Shares gives two

  • Common Mistakes Done by Assessee while Filing Income Tax Return

    Wrong Calculation of Exemption of House Rent Allowance (HRA)

    So, Many times claim exemption of whole amount House Rent Allowance (HRA) Received even if Some portion of HRA is Taxable. Asseessee must take exemption of minimum of - 

    Actual HRA Received

    40% Of Salary or Incase of Metro Cities 50% of Salary

    Excess of Rent Paid over 10% Salary

    Note: - Here Salary means Basic plus Dearness Allowance (DA) if

  • An analysis of new section 50D for taxation of ‘capital gains’ based on market value of asset

    References and links:

    Sections 2(47), 47 and 50D of the Income-tax Act, 1961

    New Provision:

    The provision to assess capital gains based on market value was inserted by the Finance Act 2012 w.e.f.  01.04.2013 that is Assessment Year 2013-14 (PYE 31.03.2013). Now the first relevant previous year is to end soon, therefore, author thought it proper to write on some new provisions for benefit of readers- tax

  • CA Final Direct Tax Amendments as applicable for May 2018 and Nov 2018 by CA. Dinesh Tejwani for CA students and CA professionals

    CA Final Direct Tax Amendments as applicable for May 2018 and Nov 2018 exams B...

  • Forfeiture of Advance money- Capital Gain

    As per section 51 of the I.T act, 1956, where an assesse in process of selling any capital asset, receives advance money or any other

  • capital gain


    Understanding capital gains tax on sold property

  • Explanation to Different Income Tax Return Forms  


    ITR -1

    ITR -1 is simple Return for Resident Individual

  • Income Exempted from Income Tax

    Agriculture Income: - Any Income earned by any Asseessee on sale of Agriculture produce or Income derived from renting Agriculture Land for Agricultural Activities shall be fully Exempted from Income Tax. However agriculture Income is included in Total Income of Asseessee for ascertaining slab Applicable to Assessee if Agriculture Income exceeds Rs. 5000 and Non - Agriculture Income doesn't

  • Capital Gain In The Case Of Transfer of Shares/ Debentures by Non-Residents

    Capital Gain In The Case Of Transfer of Shares/ Debentures by Non-Residents

    Implication of Securities Transaction Tax (STT)


    Securities Transaction Tax (STT): -Securities Transaction Tax is type of Tax levied on Purchase or Sale of Securities (Equity Shares, Equity Oriented Mutual Fund, and Option Contracts in Securities and Futures in Securities etc.)  through recognized stock exchange. Any Assesse