What is section 48 in Income Tax Act?
Section 48 of the Income Tax Act becomes applicable when a non-resident buys an asset like a share or debenture with foreign currency, converted into the Indian rupee.
What is TTBR and Ttsr?
Telegraphic Transfer Buying Rate (TTBR) and the Telegraphic. Transfer Selling Rate (TTSR) (of the foreign currency initially utilised. for the purchase of shares/debentures) as on the date of acquisition of. shares/debentures.
How do you convert capital assets to stock in trade?
Whenever a capital asset is converted into stock in trade by an assessee it is deemed as transfer of capital asset and attracts capital gain provisions, in spite of the fact that the ownership of such capital asset doesn’t change by such conversion….Capital Gain on Conversion of Capital Asset into Stock in Trade.
What is expenditure wholly and exclusively in connection with transfer?
Expenditure incurred wholly and exclusively in connection with transfer of capital asset is deductible from full value of consideration. The expression “expenditure incurred wholly and exclusively in connection with such transfer” means expenditure incurred which is necessary to effect the transfer.
What is second proviso section 48?
Second Proviso to section 48 Indexation in case LTCG on transfer of LTC asset. “Indexed cost of acquisition” and “Indexed cost of any improvement” shall be consider for the purpose of Calculation of Capital Gain.
Is chargeable U S 45?
Section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year will be chargeable to income-tax under the head ‘Capital Gains’. Such capital gains will be deemed to be the income of the previous year in which the transfer took place.
Is Jewellery a capital asset?
Personal effects which are excluded from capital assets include jewellery for personal use.
Can land be treated as stock in trade?
It is an admitted fact that there is an omission on the part of the assessee company by showing the concerned land under the head “Current Assets” but still it is not to be treated as “stock-in-trade”.
Is capital gain exempt upto 1 lakh?
Holding your shares long term i.e. for greater than a year so as to not end up paying Short Term Capital Gains Tax at the rate of 15% Keeping your LTCG less than Rs 1 lakh or marginally above Rs 1 lakh to ensure a minimal tax outgo.
How do I avoid capital gains tax on shares?
You can minimise the CGT you pay by:
- Holding onto an asset for more than 12 months if you are an individual.
- Offsetting your capital gain with capital losses.
- Revaluing a residential property before you rent it out.
- Taking advantage of small business CGT concessions.
- Increasing your asset cost base.
What is full consideration value?
Full value of consideration is the consideration received or receivable by the transferor in lieu of assets, which he has transferred. Such consideration may be received in cash or in kind. If it is received in kind, then fair market value (‘FMV’) of such assets shall be taken as full value of consideration.
What types of income are nontaxable?
What’s not taxable
- Inheritances, gifts and bequests.
- Cash rebates on items you purchase from a retailer, manufacturer or dealer.
- Alimony payments (for divorce decrees finalized after 2018)
- Child support payments.
- Most healthcare benefits.
- Money that is reimbursed from qualifying adoptions.
- Welfare payments.
Can we save tax on gold?
At the time of redemption, gold bonds would be excluded from capital gains tax. There will be no capital gains taxes on the benefit you receive if you keep the bonds until they mature (8 years) and if you make some long-term capital gains when redeeming the gold bonds. TDS would not apply to the bond.
What items are exempt from capital gains tax?
Exempt assets for capital gains tax
- Exempt assets for capital gains tax.
- Examples of exempt assets.
- Only or main residence.
- Shares and securities.