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”.
How Direct Tax Code 2012 rewards buyer of assets before 01/04/2000 ?
September 8, 2010 by 2 Comments
How to save tax on sale of agriculture land sale?
September 4, 2010 by Leave a Comment
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 [...]
Is exemption like 54 or 54F available in Direct Tax Code 2010 ?
September 3, 2010 by 1 Comment
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 [...]
Is there any special tax rate for capital gains under Direct tax Code?
September 1, 2010 by 1 Comment
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.
Only 50 % of short term capital gains on shares or units taxed .
September 1, 2010 by 1 Comment
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.
Monthly Subscription
Annual
Semi Annual Subscription
Quiz for CA/ICMA/CS Students