Direct Tax Code 2012 has changed the rule of computation of capital gains and most striking change is that now a tax payer can choose the fair market value as on 01/04/2000 of an asset as “cost of acquisition” for computing “indexed cost of acquisition”.
It is already posted that Direct Tax Code 2010 has made even agriculture land sale as taxable . However, saving grace is that section 55 of the DTC 2010 provides that in following conditions, gains on agriculture land is tax free by claim of deduction provided u/s . The conditions are The agriculture land which [...]
Under the Income Tax Act , 1961 , if the residential house or any other long term investments were sold and residential house is purchased , in that case exemption from captal gains u/s 54 or 54F is allowable. The Direct Tax Code 2010 has also similar provision u/s 55 which has provison for exemption [...]
No, unlike Income Tax Act 1961, the new Direct Tax Code 2010 , likely to be effective from 01/04/2012 , does not prescribe any special tax rate. Now the long term or short term are part of total income and is taxed at the normal tax rate applicable to you. Note following points regarding taxation of capital gains.
As on now tax rate on short term capital gains on shares or units which is subject to STT are taxed @ 15 % . However under Direct Tax Code 2010 ,not only there is no specific tax rate for STCG , it is proposed that the STCG on listed shares or units shall be taxed only to the extent of 50 % of gains computed. For example , let us say you bought a share of X ltd for Rs 100 and sold for 150 after six months.