income from capital gain-130401112856-phpapp02

8/16/2019 income from capital gain-130401112856-phpapp02

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INCOME FROM CAPITALGAINS

TAX ASPECTS OF BUSINESS

Presented To

Prof. Ramya madam

Presented By

Name Roll No.

SHASHIUMAR P!"#!$MBA%&


2/13

Ca'(tal Ga(n

Bas(s o) C*ar+e Prot or gain arising from the transfer of capital

assets during previous year is chargeable under thehead capital gains if following conditions are full led;

Their should be capital Assets. Their should be transfer of capital assets.

Transfer should take place in previous year.

Their should be prot or gains.

Any Income derived from a apital asset movable orimmovable is ta!able under the head apital "ainsunder Income Ta! Act $%&$.

'


3/13

T*ere m,st -e a Ca'(talAsset S.%/!$01

apital assets is dened to mean propety of any kind(held by the assesse( whether or not connected with hisbusiness or profession.

Property may be tangible or intangible. )and( buildings( vehicles( goodwill( tenancy rights(

leasehold rights( licences( patents( trademarks( etc.are some e!amples of capital assets

*


4/13

Ca'(tal Assets m,st -etrans)erred S.%/$&01

The sale( e!change or relin+uishment of the asset;

The e!tinguishment of any rights therein;

The compulsory ac+uisition of any capital assets by

the government;

onversion of capital assets into stock in trade.

,


5/13

Ty'es o) Ca'(tal

Assets There are two types of capital assets; -hort Term apital "ains It means a capital assets held

by an assesse for not more than *& monthsimmediately prior to its date of transfer. Ta! iscalculated as per Income Ta! Act.

)ong Term apital "ains A Asset is not a short termcapital gain is long term capital gain. '/ 0 is ta!able.

1


6/13

Com',tat(on o) STCG

2ull value of onsideration 333

)ess ost of ac+uisition 333

)ess ost of improvement 333

S*ort Term Ca'(tal Ga(n 333

)ess 4!emption 56- 1'789( 1,7:9 1,7"9 333

Net S*ort Term Ca'(tal Ga(n 333

&


7/13

Com',tat(on o) LTCG

2ull value of onsideration 333

)ess ost of ac+uisition 333

)ess ost of improvement 333

S*ort Term Ca'(tal Ga(n 333)ess 4!emption 56- 1, < 1,7=9 333

Net S*ort Term Ca'(tal Ga(n 333

>


8/13

Mean(n+

2ull ?alue onsideration It means what the transferoror is entitled to receive as consideration for the sale ofproperty6Asset. This ?alue may be in cash or in kindi.e. in e!change for an asset.

ost of Ac+uisition It is the price which the assesse

has paid or the amount which the assesse hasincurred for ac+uiring the property6Asset.

ost of Improvement It is capital e!penditureincurred by am assesse in making anyaddition6Improvements to the capital asset.

@


9/13

Inde2ed Cost o) A34,(s(t(on

IA ost of Ac+uisitionBost of the year in whichasset is transferred.

ost inCation inde! of the rst year in which asset wasrst hold by the assesse or ost inCation inde! of the

year beginning on $st

april($%@$.7which 4very is later9

%


10/13

Inde2ed 3ost o) In5estment

II ost of Ac+uisitionB ost InCation Inde! of the yearin which asset is transferred.

ost inCation inde! of the year in which improvementtook place.

$/


11/13

S,m

3 Transfers "old on $/th Day( '/$$ Rs *&11///. 4!penses on Trasfer Rs 11///.

"old purchased on '*rd Eune( $%@' Rs * )akhs to getbenet u6s 1,729.

3 Purchases house property on $'th

Day( '/$$ Rs '>)akhs at pune.

Dr 3 Transfers pune property on '%th Eune( '/$* 2or Rs*/ )akhs.

2ind out apital gain chargeable to ta!. ost ofinvestment for period $%@' is $/% '/$$F$' is >@1.

$$


12/13

Sol,t(on

-ales onsideration *&11///./)ess 4!penses 11///./

*&/////./

)ess Inde! ost f Ac+uisition

$%@' '/$$F$' is $/% >@1 respectively 7*/////B>@16$/%9 '$&/11/./

$,*%,1/./

)ess 4!emption 56- 1,729

7'>/////6*&/////B$,*%,1/9 $/>%1@>.1In3ome Under *ead Ca'(tal Ga(n *1%@&'.1

$'


13/13

THAN #OU

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