tax - capital gain

8/9/2019 Tax - Capital Gain

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P R E S E N TAT I O N O N

CAPITAL GAINS

Submitted by:Harsh Shah 49Priyam Shah 50

Vijayeta Sharma 51

Preeti Shetty 52 Vijayraj Shetty 53Kavita Shinde 54Sunil Naryani 55Nalin Surana 56


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Bas is of Ch arg e (Sec. 45 )

y An y gain ar isin g f rom the t ra n sfer or sal e of a Cap ital A sset du rin g a pr eviou s year is ch arg ea ble to t ax un de r the he ad C ap ital Gain s in the immedi ate l y

followi n g ass essme n t ye ar

y Cap ital A sset i s defi n ed as a pr operty of an y kin d, whethe r fixed o r circu latin g, mov a ble or immov a ble,tan gible or in tan gible


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Con ditio n s for Cap ital Gains Tax Lia bi lity

y The re shou ld be a Cap ital A ssety It shou ld be t ra n sferr ed by the ass esseey Such t ra n sfer takes pla ce du rin g the pr eviou s yeary An y pr ofit o r gra in shou ld h a ve ar ised as a result of

tra n sfery The a bove C ap ital A sset shou ld n ot be e xem pted u/ s

54, 54B, 54D, 54EC, 54F, 54G and 54GA


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A sset s n ot t reated as Cap ital A sset

y Stock i n tra de, co n sum a ble sto res/ ra w m ate rials he ldfor bu sin ess / pr ofess ion

y P ers on al effect s in cludi n g wear in g appar el an d

furn itu rey A gr icu ltu ral Lan d (Co n ditio n s on Situ atio n appl ies)y Certain Specified Go ld Bon dsy Special Bear er Bon ds, 1991y Gold De posit Bon ds un de r GDS, 1999


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Ty pes of Cap ital A sset s

Lon g Te rmCap ital A sset

Lon g Te rmCap ital Gain

Sho rt Te rmCap ital A sset

Sho rt Te rmCap ital Gain

> = 36 months >

Eq uity/ P referen ce Sh ar es in a Com pa n y,Secu ritie s such as Debe n tu res/Gove rn me n tSecu ritie s Un its of UTIUn its of Mutu al fun dsZero Cou pon bo n ds


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T AX LI A BILITY

SHORT TERM CAPITAL GAINS

y To dete rmi n e the V alue of Con side ra tio n

y To deduct e xpen ditu re in curr ed fo r

the t ran

sfery To deduct the co st of acquisitio n .y To deduct co st of im pr oveme n t.y To a v ail exem ptio n u/ s 54 B, 54 D, 54

G, and 54 GA.y The b ala n ce amou n t is Sho rt Te rm

Cap ital Gain s.y Sho rt Te rm Cap ital Gain s ar e

charg ea ble @ 30%

LONG TERM CAPITAL GAINS

y To dete rmi n e the V alue of Con side ra tio n

y To deduct e xpen ditu re in curr ed fo r

the t ran

sfer.y To deduct i n dexed co st of

acquisitio ny To deduct i n dexed co st of

im pr oveme n t.y To a v ail exem ptio n u/s 54, 54 B,54

D, 54 EC, 54F, 54 G, 54 GA,y The b ala n ce amou n t is Lon g Te rmCap ital Gain s.

y Lon g Te rm Cap ital Gain s ar echarg ea ble to T ax on Flat R ate i.e20%


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EX EMP TED C AP IT A L G A INS

y Sec 54 - Tran sf er o f a Long Term Re si dent ial Ho us eProperty and P u rcha si ng /Con s tr u ct ing a NewRe si dent ial Ho us e Property

y Sec 54 B - Tran sf er o f Agr icu ltu ral Land and acq ui res

a new landf or agr

ic

ult

ural p

urpo

se


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y Sec 54 D - Comp u ls ory acq uisi tion o f land and bui ld ing s f orm ing part o f indus tr ial u ndertak ing andaga in inve s ted

y Sec 54 EC - Tran sf er o f Long Term Cap i tal A ss et andinve s ting in Long Term Bond s ( NHAI, REC)


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y Sec 54 F - Tran sf er o f a Long Term Cap ital A ss et other than aHo us e Property and inve s ting in Long Term Re si dent ial Ho us eProperty

y Sec 54 G - Tran sf er o f Ass ets in s hif ting o f indus tr ialu ndertak ing s f rom u rban area to r u ral area

y Sec 54 GA - Cap i tal Ga ins f rom Tran sf er o f ass ets in ca s es of Sh if ting o f indus tr ial u ndertak ing f rom u rban area to any s pec ialeconom ic zone


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tax - capital gain

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