Capital Gains on Distribution of Assets by a Company in Liquidation No Capital Gains For Company When a company distributes its assets to its shareholders upon liquidation, such distribution shall not be regarded as a “transfer” by the company for the purposes of Section 45. [Section 46(1)] Capital Gains For Shareholders When a shareholder receives money or… Read More »
Computation of Capital Gains in Case of Depreciable Assets Introduction Section 50 deals with how capital gains are computed when a depreciable asset is transferred. Regardless of the period of holding, any gain on the transfer of depreciable assets is always treated as short-term capital gain. When Part of a Block is Sold If one or… Read More »
Reference to Valuation Officer Introduction An Assessing Officer (AO) may refer a capital asset’s valuation to a Valuation Officer to ascertain its fair market value (FMV). This referral is warranted when the declared value appears lower than the actual FMV or the asset’s nature necessitates expert evaluation. Key Provisions Purpose of Reference: To determine the… Read More »
Request for change in Mode of Operation to ‘Former or Survivor’ in NRO Account Request for change in Mode of Operation to ‘Former or Survivor’ in NRO Account The document NRI-22 is an official State Bank of India (SBI) request form used to modify the operational instructions of a joint NRO (Non-Resident Ordinary) account. 1.… Read More »
Indexed Cost of Acquisition and Cost of Improvement for Computation of Capital Gains Introduction Indexation adjusts the cost of acquisition and cost of improvement of a capital asset to neutralise inflation’s impact, ensuring tax on actual gains. The Cost Inflation Index (CII) is used for this purpose. Indexation is no longer available for assets transferred… Read More »
Cost of Acquisition and Cost of Improvement for Computation of Capital Gains Introduction The cost of acquisition includes the purchase price and expenses incurred to acquire a capital asset. Special provisions apply to determine the cost in certain scenarios. How to Calculate the Cost of Acquisition In General The cost of acquisition of an… Read More »
Period of Holding of a Capital Asset Introduction The period of holding is the duration for which a capital asset is held by the owner before its transfer. It determines whether the asset is classified as a short-term or long-term capital asset, which impacts the applicable tax rate. General Rule The period of holding is… Read More »
SBI Form C – PPF withdrawal / Closure Form SBI Form C – PPF withdrawal / Closure Form Form-C is the official application used by subscribers to request withdrawals from their Public Provident Fund (PPF) Account under the 1968 scheme. 1. Withdrawal Eligibility and Details The subscriber must provide their specific PPF account number… Read More »
Computation of Capital Gains Introduction Capital gains are computed based on the holding period, sale value, cost of acquisition and improvement, transfer expenses, reconstitution adjustments, and exemptions under Sections 54 to 54GB. Steps to Compute Capital Gains Formula for Computation Particulars Rs. Full value of consideration xxx Less: (a) Expenditure incurred wholly and exclusively in connection with transfer… Read More »
Capital Gains on Transfer of Asset Acquired from Previous Owner Introduction When a capital asset is acquired through specified circumstances (e.g., inheritance, gift, or reorganization), the period of holding and cost of acquisition are determined with reference to the previous owner. Computation of Capital Gains Scenarios of Acquisition from Previous Owner Partition of HUF Gift… Read More »