Taxation Exam > Taxation Notes > Income Tax for assessment (Inter Level) > What is transfer,Not Transfer,capital Gain - Taxation
What is transfer,Not Transfer,capital Gain - Taxation | Income Tax for assessment (Inter Level) PDF Download
What is transfer,Not Transfer,capital Gain - Taxation
What is transfer
1. the sale, exchange or relinquishment of the asset. (Tenancy rights)
2. the extinguishment of any rights therein. Extinguishment covers destruction of the assets. e.g. Termination of a lease; Redemption of preference shares/debentures.
3. the compulsory acquisition of the asset by the Govt.
4. Conversion of asset into stock-in-trade.
5. Possession of any immovable property in part performance of a contract.
Date of possession : 1-1-2017 Date of registration : 1-4-2017 YOC : 16-17
6. any transaction which has the effect of transferring, or enabling the enjoyment of, any immovable property. [It is by becoming a member in a co-operative society, company or other association of persons]
7. Maturity or redemption of zero coupon bond.
Note : The capital gain arises only on “transfer” of a capital asset i.e. where there is no ‘transfer’ there is no capital gain.
E SRCC (Asset) or E : Exchange sale relinquishment conversion compulsory acquisition or extinguishment of any rights therein.
What is “not transfer”
1. Transfer of assets under a gift or will or inheritance.
2. Refer extra topics.
Note 1: Since the above said transactions are not treated as transfer, hence, no capital gain arises.
P1: X owns 1,000 partly paid-up shares in a company. These shares have been forfeited by the company for non-payment of call money. X wants to claim Rs 8,000 (i.e., amount paid at the time of application and allotment) as short-term capital loss. Is the claim of X tenable ?
Hint: Yes. Forfeiture of shares amounts to transfer u/s 2(47). Transfer in relation to capital asset includes extinguishment of any rights therein. In the above question since X’s rights in the shares has extinguished, therefore X is entitled to claim short term capital loss of Rs 8,000. If there is a forfeiture of application money shares do not come into existence. There do not exists capital assets. Therefore no loss arises under the head capital gain.
Computation of Capital Gain
Full value of consideration | xxx | |
(-) Cost of Acquisition (COA) | (xxx) | |
(-) Cost of Improvement (COI) | (xxx) | |
(-) Expenses on transfer | (xxx) | |
Capital Gain |
| xxx |
Note 1: In case of transfer of long term capital asset, indexed cost of acquisition and indexed cost of improvement shall be subtracted.
Explanation of formula for indexation
1. Indexed cost of acquisition
2. Indexed cost of improvement
Note 1: Indexation is available only on long term capital asset.
Note 2: Indexation is not available in case of long term capital asset being bonds or debentures. [Proviso 3 to section 48]. However indexation benefit is available in case of Sovereign Gold Bond.
Note 2: Indexation is not available in case of long term capital asset being bonds or debentures. [Proviso 3 to section 48]. However indexation benefit is available in case of Sovereign Gold Bond.
Full vaLue of consideration
1. Full value of consideration means amount received or receivable on transfer of capital asset. It does not mean market value. Where the consideration is received in installment in different years, the entire value of consideration is taken into account in computing capital gain since capital gain is taxable in the year of transfer. (YOC = YOT)
If consideration is received in kind, then full value of consideration is fair market value of the asset exchanged.
2. Section 50C. Full value of consideration in case of transfer of immovable property
Where the consideration on transfer of land or building is less than the value adopted or assessed or assessable by any stamp valuation authority for the purpose of payment of stamp duty, the value so adopted shall be deemed to be the full value of the consideration.
In other words, full value of consideration is higher of sale consideration or value adopted by the Stamp Valuation Authority (Circle Rate).
Note : Similar provisions has been added in Section 43CA under the PGBP chapter.
The document What is transfer,Not Transfer,capital Gain - Taxation | Income Tax for assessment (Inter Level) is a part of the Taxation Course Income Tax for assessment (Inter Level).
All you need of Taxation at this link: Taxation
|
405 videos|72 docs
|
FAQs on What is transfer,Not Transfer,capital Gain - Taxation - Income Tax for assessment (Inter Level)
| 1. What is a transfer in terms of taxation? |  |
Ans. In taxation, a transfer refers to the act of moving ownership or rights of an asset, property, or financial instrument from one person or entity to another. This can include sales, gifts, inheritances, or any other disposal of property.
| 2. What is considered as not a transfer for taxation purposes? | |
Ans. Not every transaction or movement of property is considered a transfer for taxation purposes. For example, if property is transferred between spouses, it is often exempt from taxation. Similarly, transfers made to charitable organizations or government bodies may also be exempt.
| 3. What is capital gain in taxation? | |
Ans. Capital gain in taxation refers to the profit or gain realized from the sale or disposal of a capital asset, such as stocks, bonds, real estate, or other investments. It is calculated as the difference between the selling price of the asset and its original purchase price.
| 4. How is capital gain taxed? | |
Ans. Capital gains are usually subject to taxation, and the tax rate can vary depending on the jurisdiction and the holding period of the asset. In many countries, capital gains are categorized as either short-term or long-term, with different tax rates applied to each. Short-term gains, typically from assets held for less than a year, are often subject to higher tax rates than long-term gains.
| 5. Are there any exemptions or deductions available for capital gains tax? | |
Ans. Yes, there are often exemptions or deductions available for capital gains tax. Many jurisdictions provide a certain level of tax-free capital gains, typically for small-scale transactions. Additionally, specific types of investments, such as those made in certain government-approved funds or qualified small business stocks, may qualify for preferential tax treatment or exemptions. It is important to consult tax laws and regulations specific to your jurisdiction for accurate information on exemptions and deductions.
Related Exams
About this Document
|
Nov 16, 2024 Last updated |
Document Description: What is transfer,Not Transfer,capital Gain - Taxation for Taxation 2024 is part of Income Tax for assessment (Inter Level) preparation.
The notes and questions for What is transfer,Not Transfer,capital Gain - Taxation have been prepared according to the Taxation exam syllabus. Information about What is transfer,Not Transfer,capital Gain - Taxation covers topics
like What is transfer,Not Transfer,capital Gain - Taxation and What is transfer,Not Transfer,capital Gain - Taxation Example, for Taxation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for What is transfer,Not Transfer,capital Gain - Taxation.
Introduction of What is transfer,Not Transfer,capital Gain - Taxation in English is available as part of our Income Tax for assessment (Inter Level)
for Taxation & What is transfer,Not Transfer,capital Gain - Taxation in Hindi for Income Tax for assessment (Inter Level) course.
Download more important topics related with notes, lectures and mock test series for Taxation
Exam by signing up for free. Taxation: What is transfer,Not Transfer,capital Gain - Taxation | Income Tax for assessment (Inter Level)
Description
Full syllabus notes, lecture & questions for What is transfer,Not Transfer,capital Gain - Taxation | Income Tax for assessment (Inter Level) - Taxation | Plus excerises question with solution to help you revise complete syllabus for Income Tax for assessment (Inter Level) | Best notes, free PDF download
Information about What is transfer,Not Transfer,capital Gain - Taxation
In this doc you can find the meaning of What is transfer,Not Transfer,capital Gain - Taxation defined & explained in the simplest way possible. Besides explaining types of
What is transfer,Not Transfer,capital Gain - Taxation theory, EduRev gives you an ample number of questions to practice What is transfer,Not Transfer,capital Gain - Taxation tests, examples and also practice Taxation
tests
|
Explore Courses for Taxation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
capital Gain - Taxation | Income Tax for assessment (Inter Level)
,practice quizzes
,Extra Questions
,MCQs
,shortcuts and tricks
,Not Transfer
,mock tests for examination
,capital Gain - Taxation | Income Tax for assessment (Inter Level)
,capital Gain - Taxation | Income Tax for assessment (Inter Level)
,Viva Questions
,Previous Year Questions with Solutions
,Not Transfer
,ppt
,What is transfer
,What is transfer
,Not Transfer
,Sample Paper
,study material
,video lectures
,Important questions
,Summary
,past year papers
,Free
,Exam
,Semester Notes
,Objective type Questions
,What is transfer
;
Additional Information about What is transfer,Not Transfer,capital Gain - Taxation for Taxation Preparation
What is transfer,Not Transfer,capital Gain - Taxation Free PDF Download
The What is transfer,Not Transfer,capital Gain - Taxation is an invaluable resource that delves deep into the core of the Taxation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the What is transfer,Not Transfer,capital Gain - Taxation now and kickstart your journey towards success in the Taxation exam.
Importance of What is transfer,Not Transfer,capital Gain - Taxation
The importance of What is transfer,Not Transfer,capital Gain - Taxation cannot be overstated, especially for Taxation aspirants.
This document holds the key to success in the Taxation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
What is transfer,Not Transfer,capital Gain - Taxation Notes
What is transfer,Not Transfer,capital Gain - Taxation Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to What is transfer,Not Transfer,capital Gain - Taxation.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, What is transfer,Not Transfer,capital Gain - Taxation Notes on EduRev are your ultimate resource for success.
What is transfer,Not Transfer,capital Gain - Taxation Taxation Questions
The "What is transfer,Not Transfer,capital Gain - Taxation Taxation Questions" guide is a valuable resource for all aspiring students preparing for the
Taxation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study What is transfer,Not Transfer,capital Gain - Taxation on the App
Students of Taxation can study What is transfer,Not Transfer,capital Gain - Taxation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the What is transfer,Not Transfer,capital Gain - Taxation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of What is transfer,Not Transfer,capital Gain - Taxation is prepared as per the latest Taxation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup