Section 10 provides list of incomes which are exempt from tax amongst those the major exemptions relating to capital gain are as follows: Section 10(33): Long-term or short-term capital gain arising on transfer of units of Unit Scheme, 1964 (US 64) referred to in Schedule I to the Unit Trust of India (Transfer of Undertaking and […]
How to compute short-term capital gain?
Short-term capital gain arising on account of transfer of short-term capital asset is computed as follows: Particulars Rs. Full value of consideration (i.e., Sales value of the asset) XXXXX Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission, etc.) (XXXXX) Net Sale Consideration XXXXX Less: Cost of acquisition (i.e., […]
How to compute long-term capital gain?
Long term capital gain arising on account of transfer of long-term capital asset will be computed as follows: Particulars Rs. Full value of consideration (i.e., Sales consideration of asset) XXXXX Less: Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission, etc.) (XXXXX) Net sale consideration XXXXX Less: Indexed cost of […]
What is the meaning of the term ‘long-term capital asset’?
Any capital asset held by a person for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset. However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual […]
What is the meaning of capital asset?
Capital asset is defined to include: a) Any kind of property held by an assessee, whether or not connected with business or profession of the assesse. b) Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992. However, the following items are […]
Is a Resident senior citizen granted exemption from payment of advance tax?
As per section 208, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. However, section 207 gives relief from payment of advance tax to a resident senior citizen. As per section 207 a resident senior citizen (i.e., an individual of the age […]
If my income is taxed in India as well as abroad, can I claim any sort of relief on account of double taxation?
Yes, you can claim relief in respect of income which is charged to tax both in India as well as abroad. Relief is either granted as per the provisions of double taxation avoidance agreement entered into with that country (if any) by the Government of India or by allowing relief as per section 91 of the […]
What books of account have been prescribed to be maintained by a person carrying on business/profession under the Income-tax Act?
The Income-tax Act does not prescribe any specific books of account for a person engaged in business or in non-specified profession. However, such a person is expected to keep and maintain such book of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of […]
How is advance tax calculated and paid?
Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below: a) In case of all the assessees (other than the eligible assessees as referred to in section 44AD and 44ADA ) : i) Atleast to 15 per cent […]
Who is supposed to pay Income-tax?
Income-tax is to be paid by every person. The term ‘person’ as defined under the Income-tax Act under section 2(3) covers in its ambit natural as well as artificial persons. For the purpose of charging Income-tax, the term ‘person’ includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local […]