What is section 48 of Income Tax Act?

Section 48 of the Income Tax Act becomes applicable when a non-resident buys an asset like a share or debenture with foreign currency, converted into the Indian rupee.

What is the section of 54?

Section 54 of the Income Tax Act allows the lower of the two as exemption amount for a taxpayer: Amount of capital gains on transfer of residential property, or. The investment made for constructing or purchasing new residential property.

When was Section 50D introduced?

Finance Act, 2012 has introduced Section 50D deeming the “FAIR MARKET VALUE” as the Full Value of consideration in certain circumstances.

How is Slump sale treated in income tax?

Capital gains earned through a slump sale are a difference between the sale value and the net worth of the undertaking. Under Section 48 and 49 of the Income Tax Act, the net worth is the cost of acquisition and improvement.

What is TTBR and Ttsr?

Telegraphic Transfer Buying Rate (TTBR) and the Telegraphic. Transfer Selling Rate (TTSR) (of the foreign currency initially utilised. for the purchase of shares/debentures) as on the date of acquisition of. shares/debentures.

What is Section 112 of Income Tax Act?

Section 112 of the Income Tax Act Under Section 112 of Income Tax Act, an assesses is required to pay a tax at the rate of 20% or 10% after and before indexation respectively on the capital gained by him on long term capital assets defined under Section 2 (29A) of the IT Act, 1961.

What is Section 54 and 54F?

Section 54 & section 54F of Income tax Act –deals with exemption from tax on LTCG only if used for purchase or construction of a house with in specified limits.

What is 50d income?

The final rule clarifies that Section 50(d) income is a partner item rather than a partnership item, that Section 50(d) income goes to the partner in the lessee that used the tax credits and that partners are not entitled to increase their bases in their partnership interests as a result of Section 50(d) income …

What is section 51 of Income Tax Act?

Section 51 of the ITA allows transferors to defer tax when converting their debt to shares or exchanging their shares for new shares of a different class of the same company, provided that the transferor receives no consideration other than the new shares.

What is a slump sale give 2 examples?

Section 2(42C) of the Act defines slump-sale as follows: “transfer of one or more undertakings as a result of the sale for a lump-sum consideration without values being assigned to the individual assets and liabilities”.

Is TDS applicable on slump sale?

Now as the capital gains arising from the slump sale in indian fo us inc is taxable in india, A ltd has to deduct TDS u/s 195, but how will A Ltd deduct such TDS??? 22 December 2010 TDS is to be deducted on capital gain portion as per applicable rate of TDS.

What is second proviso section 48?

Second Proviso to section 48 Indexation in case LTCG on transfer of LTC asset. “Indexed cost of acquisition” and “Indexed cost of any improvement” shall be consider for the purpose of Calculation of Capital Gain.

What is Section 111A of Income Tax Act?

Section 111A is applicable in case of STCG arising on transfer of equity shares or units of equity oriented mutual-funds or units of business trust which are transferred on or after 1-10-2004 through a recognised stock exchange and such transaction is liable to securities transaction tax.

What is 111A and 112A?

Section 111A of the Income Tax deals with short-term capital gains, and for a long-term capital gains Section, 112A is applicable. The Finance Act of 2018 added Section 112A to tax long-term capital gains from the sale of listed equity shares, units of equity-oriented mutual funds, and business trust units.

What is Section 112 and 112A?

Capital gains are taxed as per the tenure of holding investments. The gains on investments are broadly classified into long-term capital gains or short-term capital gains. The taxation of long-term capital gains is divided under two provisions, i.e. Section 112 and Section 112A of the Income Tax Act.

What is section 54F applicable?

Section 54F of the Income Tax Act, 1961 is a section that allows tax exemption on the long term capital gains earned from selling a capital asset, other than a house property. So, if you sell a capital asset like shares, bonds, jewellery, gold, etc.

Can section 54 and 54F simultaneously?

Section 54 and 54F are mutually exclusive and cannot be used at the same time, due to the nature of assets covered under these sections. So, either Section 54 exemption will be available or exemption under Section 54F will be available, depending on the nature of the long-term asset sold.

What is deduction u/s 54F?

As per the Income Tax Act’s Section 54F, exemption of capital gain is made available in the situation of long term capital assets transfer against the investment one makes in a residential house.

What is Section 50b of the Income Tax Act 1999?

Section 50B was inserted in the Act vide the Finance Act, 1999 w.e.f 1st April 2000, in view of the decisions that ‘slump sales’ were not taxable under the capital gain provisions because it was not possible to compute cost of acquisition.

What is the Income Tax Act 1961?

The Act i.e. Income Tax Act, 1961 was enacted to tax the income or gains made by an assessee.

What is slump sale&Section 50b of the Income Tax Act?

Here we are explaining taxation on slump sale as per section 50B of the Income Tax Act, 1961. What is Slump Sale & Section 50B of the Income Tax Act? Under section 50B, special provisions are given to calculate capital gain or loss in case of slump sale. First of all let’s understand “What is the meaning of slump sale”?

Is the amended provision of Section 50b relevant for 2021-22?

The amended provision of section 50B is effective for financial year 2020-21 relevant to the assessment year 2021-22.