Tag: Capital gain as per Indian Tax Act

Capital gains tax 2017-18

Capital gain tax rate 2017 under Income tax act, 1961. Capital gain Short term capital gain tax rate Long term capital gain tax rate On sale of shares and mutual funds 15%  Nil On sale of assets (other than shares and mutual funds)  Tax at normal rate (income tax slab) 20% On sale of debt …

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Rates Of Capital Gain Tax

1. Short-term capital gain is taxed at normal rate. In respect of Listed Securities transferred on or after 1.10.2005, Section 111A will apply i.e. taxable at 10%. 2. Long-term capital gain other than gains arising out of transfer of security including Zero Coupon Bonds are taxed as follows :   Kind of Assessee Tax % …

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Bonus Stripping and tax liability

1. Applicability: All Assesses 2. Transaction: Any person who purchases Units (Original Units) within a period of 3 months prior to record date and sells such units within a period of 9 months after such record date. On the record date, he was allotted Bonus Units (additional units without any payment) 3. Tax Implication: (a) …

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Dividend Stripping

1. Purchase: The securities or units are purchased within 3 months prior to the record date. 2. Sale: Sale or transfer is done within – (a) 3 Months for Securities, and (b) 9 Months for Units, after the record date. 3. Exempt Income: Dividend / Income on such securities/units Is exempted from tax. 4. Dividend …

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Cost In Relation To Certain Financial Assets

Sl. No. Particulars of asset Date of Acquisition Holding Cost of Acquisition Period 1 Shares originally purchased : (a) Primary market Date of Allotment Allotment price (b) Secondary market     (i) Transactions through share brokers Date of broker’s note Amount paid + Brokerage Charges + Adjustment for ex. & cum. dividend/ interest As above …

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Provisions Relating To Claiming Of Exemption In Order To Reduce Tax Liability On Short Term Capital Gains

  Exemption u/s Applicable for 54B Transfer of Agricultural Land 54D Transfer by way of Compulsory acquisition by Government 54G Shifting of Industrial Undertaking from Urban to Rural Area 10(37) Compulsory acquisition of Agricultural Land by Central Government/RBI. 10(41) Transfer by Companies engaged in Power Sector Business

Extension Of Time Limit For Acquiring New Asset, When Enhanced Compensation Is Paid

(a) Initial Compensation: If initial compensation is received in parts, then the entire initial compensation is taxable in the year in which a part is first received. Time limit for acquiring the new asset u/s 54, 54B, 54D, 54EC and 54F shall be determined on the basis of dates of receipt of different parts of …

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Exemption Available To An Undertaking Which Shifts Its Base To A Special Economic Zone And In The Course Makes Gain On Transfer of Asset

Applicabllity Individual / HUF Asset Transferred (a) Land and Building, Plant and Machinery or any right in Land or Building used by Industrial undertaking. (b) Transfer as a result of shifting of such undertaking from Urban Area to Special Economic Zone (which may be situated in Urban or Any other area). Nature of the Asset …

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Exemptions Available For Capital Gains On Shifting Of Industrial Undertaking From Urban To Rural Area

Applicabllity Individual / HUF Asset Transferred Land and Building, Plant and Machinery used by Industrial undertaking and shifting of such undertaking from Urban area to Non-urban area Nature of the Asset Any Capital Asset New Asset to be acquired Land, Building, Plant and Machinery for Industrial Undertaking in Nonurban area or to meet the expenses …

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Exemptions From Capital Gains For Transfer Of Any Long Term Capital Asset Other Than A Residential House Property

Applicabllity Individual / HUF Asset Transferred Any Long Term Capital Asset other than Residential House Property Nature of the Asset Long Term Capital Asset Condition On the date of transfer of the LTCA, the assessee should not own more than one Residential House Property New Asset to be acquired Residential House Property Amount to be …

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