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What Are the Exemption Provisions for Capital Gains on the Sale of Residential Property Under Section 54?

The sale of shares in a business or company by a partner or member can give rise to capital gains tax under the provisions of Section 45(4) of the Income Tax Act, 1961. Section 45(4) specifically addresses the tax

What are the tax implications for capital gains when an individual or entity transfers assets as part of a business or partnership dissolution?

The dissolution of a business or partnership can trigger several tax implications, especially with respect to capital gains. When assets are transferred during a business or partnership dissolution, the Income Tax Act, 1961 outlines specific provisions that affect the

What are the legal interpretations of “personal effects” and how do they impact capital gains taxation as per Section 2(14)?

Section 2(14) of the Income Tax Act, 1961 defines "capital asset" and provides an important classification for capital gains taxation. Among the assets that are excluded from the term "capital asset" are personal effects. This exclusion plays a significant

Capital Gains in Firm Reconstitution: The Role of Deemed Transfer Under Section 45(4)” A Complete Guide

When a business entity such as a firm or an Association of Persons (AOP) undergoes dissolution or reconstitution, the treatment of its capital assets becomes a critical area of tax concern. Under Section 45(4) of the Income Tax Act,

“Section 45(2): What Happens When a Capital Asset is Converted to Stock-in-Trade?” Complete Guide

The Income Tax Act, 1961 contains provisions that help govern how various assets are taxed when they are transferred or converted. Section 45(2) specifically addresses the scenario where a capital asset is converted into stock-in-trade. This provision is crucial

How to Apply Indexed one Cost of Acquisition When Calculating A Long-Term Capital Gains (LTCG)

When it comes to calculating long-term capital gains (LTCG), understanding the concept of indexed cost of acquisition and indexed cost of improvement is essential. These factors play a crucial role in reducing the taxable capital gain, thereby minimizing the

What is the complete meaning of “capital asset” under Section 2(14), and which assets are excluded from this definition?

A capital asset is a crucial term in the context of taxation, especially when it comes to the computation of capital gains under the Income Tax Act, 1961. Understanding what qualifies as a capital asset and what does not

What are the complete basic conditions for taxing capital gains under Section 45 of the Income Tax Act?

Capital gains are a vital component of the Indian Income Tax framework. They arise from the transfer of capital assets, and their taxation is governed primarily by Section 45 of the Income Tax Act, 1961. In this blog, we

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