Capital Gains

Can one claim exemption from capital gains u/s 54 & 54F simultaneously for buying one house only !

August 25, 2010 By taxworry Leave a Comment

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Excerpt: Section 54 provides exemption if you sale a residential house and buy a residential house. Section 54F provides exemption if one sales capital asset other than residential house and buy residential house. Interesting question has been asked by Kennedy of Chennai on claim of exemption from capital gains on sale of land , building and house. Here is his question Mr.X sells 1) Land and building and 2) 2 flats and 3) 2 plots of land. He is also buying a new residential house the cost of which exceeds the sale proceeds of all the three put together. Can his capital gain be exempted. All…

Filed Under: A of Your Question, capital gains Tagged With: asset, Building, capital asset, different situation, Exemption, land, long term capital, long term capital gains, plots of land, put

Cost Inflation Index for FY 2010-11 Notified !

July 22, 2010 By taxworry Leave a Comment

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Excerpt: Cost Inflation Index is very important index as it helps you to compute the indexed cost for the purpose of computing capital gains. Therefore, if you sell any long term asset in FY 2010-11 , you will require to compute the indexed cost for the purpose computing capital gains in FY 2010-11. The cost inflation index is notified and is fixed at 711 for Fy 2010-11. Here is the notification [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART 11, SECTION 3, SUB- SECTION (II ] GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF DIRECT TAXES) NOHFi(.�ATION INCOME-TAX New Delhi, the 210 July, 2010 S.O. (E)- In…

Filed Under: capital gains Tagged With: Board, computing capital, Direct, income tax act, income tax act 1961, india ministry, inflation, inflation index, ministry, number

No need of tax audit if shares held as investments !

July 21, 2010 By taxworry 1 Comment

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Excerpt: Many readers who are investors of shares are confused about law of tax audit under Income Tax Act. Today only , Mr. Jay of Chennai asks “I have a long term capital gain of about rs. 30 lakhs from one time sale of shares only, and income of 12 lakhs.I am self employed.no salary.no business. Hypothetically it is above 40 lakhs this year alone. Do i have to get return audited compulsorily & file itr-2 or itr-4?Please reply immediately as i have to file my return now.” First of all your answer : No tax audit is required in your case ….

Filed Under: A of Your Question, capital gains Tagged With: Act, audit, business head, buying and selling shares, income tax act, law, long term capital gain, need, Return, Tax Audit

Is there any exemption on sale of premise within one year?

June 29, 2010 By taxworry Leave a Comment

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Excerpt: What is the tax payable on the sale of a commercial premises sold within one yaer of purchase? are there any exemption if the premises was held for more than 3 years? Everton Vales ,Goa Any gain on commercial premise sold within a year is short term capital gain. Therefore, the gain will become part of your normal income and tax rate will be what is applicable to you. There is no separate tax rate for short term capital gains on any asset other than listed shares or mutual fund units. You can read about tax rates applicable in case…

Filed Under: A of Your Question, capital gains Tagged With: capital gains tax rate, commercial premise, Exemption, long term capital gains, premise, purchase, short term capital gain, short term capital gains, Vales, yaer

Capital gains tax rate simplified !

June 29, 2010 By taxworry 1 Comment

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Excerpt: First of all , see whether the asset sold is long term asset or short term asset . Follow the rule given below : Shares or units of mututal fund held for more than 12 months are long term. If held for less than 12 months, the shares or mututal fund units are short term asset. In case of all other kinds of asset, one is having long term assets if it is held for more than 36 months. If held for less than 36 months , the asset is calssified as short term capital asset. Different tax rates are applicable for…

Filed Under: capital gains Tagged With: asset, Capital, capital gains tax, capital gains tax rate, even shares, indexation, kind, term assets, transaction, zero coupon bond

Long term gains exemption u/s 54EC simplified in six steps !

June 27, 2010 By taxworry 1 Comment

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Excerpt: When can you claim exemption ? Exemption u/s 54EC can be claimed only when you earn long term capital gains on any kind of asset? What should one do to claim exemption u/s 54EC ? You will have to buy the bonds issued by Rural Electrification Corporation or National Highway Authority of India issued for the purpose of 54EC . Presently (for FY 2010-11 ) they are in market for such capital gains bonds. Read details How much exemption can be claimed ? Right now there is upper limit of investment up to Rs 50,00,000. Should one have to invest the sale proceeds or only up to…

Filed Under: capital gains Tagged With: asset, capit, Capital, capital asset, date, Exemption, national highway authority of india, six steps, taxable capital, transfer

REC and NHAI in market for 54EC capital gains exemption bonds

June 27, 2010 By taxworry 1 Comment

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Excerpt: Income Tax Act provides methods of exemption from tax on capital gains u/s 54, 54F or 54EC and others. However, there are only two kinds of scheme for claiming exemption from long term capital gains on sale of residential or any other capital asset. One method provided under the I T Act is certainly by buying the residential house or constructing the house under both section 54 or 54F . The other way is by investing in capital gains bonds u/s 54EC. But unlike in the past, as per section 54EC , bonds specified for the purpose of 54EC are presently…

Filed Under: A NEWS u can USE, capital gains Tagged With: asset, capital gains exemption, Click, Exemption, income tax act, long term capital gains, national highway authority of india, NHAI, nhai bonds, tax

Whether purchase and sale of share through demat account is STCG or Speculation?

June 23, 2010 By taxworry Leave a Comment

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Excerpt: Income Tax Act distinguishes between different types of transaction in shares . The purchase or sale of shares can result in -short term capital gains or trading gains or speculative gains – all depending upon the circumstances in which such purchase or sale of shares have been done. In this context , Om Prakash Singh of Varanasi asks : “Whether purchase and sale of share through demat account is STCG or Speculation and whether interest paid on loan for purchase of share is deductible in STCG?” Speculative transaction is defined under section 43(5) of the I T Act to mean that purchase…

Filed Under: A of Your Question, capital gains Tagged With: business gains, demat, gians, income tax act, loss, purchase, section 43, short term capital gains, Speculation, transaction

Can you claim exemption u/s 54 or 54F for constructing house on land owned by wife?

May 15, 2010 By taxworry Leave a Comment

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Excerpt: Capital gains exemption can be claimed u/s 54 or 54F if the sales consideration is invested in buying the house or constructing the house . It does not matter if the land on which construction is done is owned by spouse. This is what karnataka High court said in the deicision in case of CIT and Anr. vs P.R. Seshadri [228 CTR 334 ] The facts of the case The assessee during the relevant accounting period was holding 90% shares in a company and transferred the entire shareholding in favour of another company. The assessee during the year had received Rs.25,00,000/- as advance payment towards…

Filed Under: Case Laws Discussion, capital gains Tagged With: 21st april, A.O, advance payment, assessee, capital gains exemption, construction, F. Decision, House, land, mortgage purposes, P.R. Seshadri, seshadri, wife

Can capital gains exemption u/s 54F or 54 be claimed for buying land also?

May 15, 2010 By taxworry Leave a Comment

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Excerpt: Yes, one can claim exemption from capital gains u/s 54 or 54F for land purchase , but only if the said land is part of land on which house is being constructed. This is the decision in ACIT vs Narendra Mohan Uniyal (2009) 34 SOT 152(Del), dt.31.08.2009. Facts of the case The assessee sold a piece of land for Rs.1.20 crores which was purchased by him in the financial year 1989-90, which resulted into capital gains of Rs.31.04 lakhs. A claim of deduction under section 54F was filed on the plea that subsequent to the sale of plot, the assessee purchased a piece…

Filed Under: Case Laws Discussion, Exemption, capital gains Tagged With: acit, appurtenant, crores, Del, Delhi, Exemption, F, F. Had, F. Thus, land, Mohan Uniyal, narendra mohan, plot, plot of land, Section, Sunita Aggarwal

India Income Tax Made Simple

Can one claim exemption from capital gains u/s 54 & 54F simultaneously for buying one house only !

Cost Inflation Index for FY 2010-11 Notified !

No need of tax audit if shares held as investments !

Is there any exemption on sale of premise within one year?

Capital gains tax rate simplified !

Long term gains exemption u/s 54EC simplified in six steps !

REC and NHAI in market for 54EC capital gains exemption bonds

Whether purchase and sale of share through demat account is STCG or Speculation?

Can you claim exemption u/s 54 or 54F for constructing house on land owned by wife?

Can capital gains exemption u/s 54F or 54 be claimed for buying land also?

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