capital gains - My Tax Support

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,

Impact of the dissolution or reconstitution of a firm or AOP on capital gains under Section 45(4)?

The Income Tax Act, 1961 provides specific provisions for taxing capital gains in the event of the dissolution or reconstitution of a firm or Association of Persons (AOP). Under Section 45(4), the tax treatment of capital gains arises when

“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

How do you distinguish between short-term and long-term capital assets under Section 2(42A) and Section 2(29AA)?

Capital gains taxation under the Income Tax Act is a significant aspect for taxpayers who have investments in capital assets like property, shares, and securities. The classification of capital assets into short-term and long-term is crucial in determining the

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

A Complete Discontinued Business Income: Tax Treatment and Compliance”

Introduction Employee welfare is an essential aspect of running a business, and some companies extend this welfare to include family planning expenses for employees. While promoting family planning initiatives is commendable, business owners often wonder whether such expenses are

How is the Fair Market Value of Converted Inventory Determined?

Introduction When inventory is converted into a capital asset, determining its Fair Market Value (FMV) is crucial for accurate tax calculations. Under Section 45(2) of the Income Tax Act, 1961, FMV plays a pivotal role in calculating both business

Tag: capital gains