Admissibility of Foreign Documents: Right to Inspect Originals During Cross-Examination Facts The Allegation: The accused was prosecuted under Sections 276C and 277 of the Income-tax Act (and Section 191 of the IPC) for the alleged non-disclosure of foreign assets. The Evidence: During the pre-charge evidence stage, the prosecution introduced foreign documents (Ex. CW-1/6 and Ex.… Read More »
Tax on Long-Term Capital Gain from Sale of Securities Chargeable to STT Introduction Long-term capital gains (LTCG) from the sale of specified securities are exempt from tax if the aggregate gain during the year does not exceed Rs. 1,25,000. Gains above this threshold are taxable at a concessional rate of 12.5% or 10%. Key Provisions… Read More »
Tax on Short-Term Capital Gain from Sale of Securities Chargeable to STT Introduction Short-term capital gains (STCG) from the sale of specified securities are taxable at a concessional rate of 20% or 15%, provided the Securities Transaction Tax (STT) is paid at the time of sale. Deductions under Chapter VI-A are not permitted against such… Read More »
Inapplicability of Section 69A When Transactions Are Recorded in Books of Account Facts The Dispute: The Department made an addition of ₹1.53 crores to the assessee’s income, treating cash deposits in the bank account as “unexplained money.” Assessee’s Defense: The assessee argued that the deposits represented sales and receipts already recorded in its books of… Read More »
Computation of Capital Gains in Case of Immovable Property Introduction Capital gains from transferring immovable property (land, building, or both) are subject to special rules regarding computation, exemptions, and tax rates. Key Provision Capital Gains Computation: Particulars Amount Full value of consideration (Higher of actual consideration and stamp duty value) xxx Less: (a) Cost of… Read More »
Interplay Between Section 54F and Section 70: Exemption Prevails Over Set-off Facts The Transactions: During the assessment year 2022-23, the assessee realized a Long-Term Capital Gain (LTCG) of ₹69.84 lakhs from the sale of equity shares and a Long-Term Capital Loss (LTCL) of ₹37.72 lakhs from the sale of other equity shares. The Claim: The… Read More »
Admissibility of Omitted Documents in Black Money Act Prosecutions Facts The Allegation: Following a search, the Revenue initiated proceedings under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. A criminal complaint was filed under Section 200 Cr.P.C. for wilful attempt to evade tax (Section 51(1) read with Section 54).… Read More »
Computation of Capital Gain on Dissolution or Reconstitution of Firm, AOP, or BOI Introduction When a firm, AOP, or BOI is dissolved or reconstituted, and a partner/member receives capital assets, stock-in-trade, or money, the entity is deemed to have transferred such assets. The resulting income is taxable in the year of receipt by the partner/member.… Read More »
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 »