Exemptions for Capital Gains Introduction Capital gains may be exempted if the capital asset meets specific criteria or if the gains are reinvested in prescribed assets. Exemptions for Reinvestment The Income-tax Act allows exemption from capital gains tax if the amount of capital gains or consideration, as the case may be, is further invested in… Read More »
Capital Gains on Transfer of Market-Linked Debentures, Specified Mutual Funds, or Unlisted Bonds/Debentures Introduction: Gains from the transfer, redemption, or maturity of specified mutual funds (SMFs), market-linked debentures (MLDs), and unlisted bonds or debentures are treated as short-term capital gains and taxed at the assessee’s applicable rates. [Section 50AA] Scope of Section 50AA: Applicable to gains… Read More »
Allowability of Recharged ESOP Costs and Extension of BAPA Margins to Non-BAPA Transactions Facts Business Expenditure (ESOP Recharges): The Assessee, a captive service provider for the Morgan Stanley group, rendered IT and ITeS services to overseas group entities. Under a global group arrangement, employees of the Assessee were granted stock units/options of the parent company… Read More »
Capital Gains on Slump Sale Introduction: A slump sale involves transferring one or more undertakings for a lump sum consideration without assigning individual values to assets and liabilities. Capital gains are computed as the excess of the fair market value (FMV) of the undertaking over its net worth. [Section 50B] Definition: ‘Slump sale’ means transfer… Read More »
Exemption for Leave Salary: Protection of Government Service Benefits Post-PSU Absorption Facts The Career Path: The assessee originally commenced his professional service with the Department of Telecommunication (DoT), which is a department under the Central Government of India. The Absorption: During his career, he was subsequently absorbed into Bharat Sanchar Nigam Limited (BSNL), a Public… Read More »
Full Value of Consideration for Computation of Capital Gains Introduction Full value of consideration refers to the amount received or receivable by the owner upon the transfer of a capital asset. It may be received in cash or kind, with fair market value (FMV) considered for non-monetary consideration. It is to be noted that the… Read More »
SBI Data Subjects Rights (DSR) Request Form SBI Data Subjects Rights (DSR) Request Form The Data Subject Rights (DSR) Form is a document provided by State Bank of India (SBI) to allow NRI customers to exercise their legal rights under the General Data Protection Regulation (GDPR) regarding their personal data. 1. Purpose and Scope… Read More »
Exemption Limit for Leave Encashment of Non-Government Employees Enhanced to ₹25 Lakhs Facts The Parties: The assessee is an individual who retired from the Bank of Baroda, a public sector bank. The Payment: Upon retirement, the assessee received a sum of approximately ₹9.27 lakhs as leave encashment. The Claim: The assessee claimed the entire amount… Read More »
Capital Gains on Buy-Back of Shares Introduction: Buy-back of shares is treated as a transfer, and income from it is taxable under “Capital Gains.” From 01-10-2024, consideration received by shareholders from a domestic company’s buy-back is deemed a dividendunder Section 2(22)(f). The consideration for capital gains computation is treated as nil, resulting in a capital loss… Read More »
Taxability of Streedhan and Eligibility for Section 54F & Housing Loan Deductions Facts The Assets: The assessee sold gold ornaments (approx. 1,000 grams) and silver utensils for ₹29.91 lakhs, claiming these were received as Streedhan during her marriage in 1992 and other family occasions. The Investment: The sale proceeds were invested in a residential house… Read More »