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What You Need to Know About Capital Gains on Asset Transfers to Firms, AOPs, and LLPs Under Section 45(3)

The Income Tax Act, 1961 provides specific provisions to govern the taxation of capital gains arising from the transfer of capital assets. One of the situations where capital gains tax treatment becomes particularly important is when a capital asset

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