capital gain.ppt satish

7/31/2019 Capital Gain.ppt Satish

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CAPITAL GAIN


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ROHIT GUPTA 24

SANTOSH GUPTA 25

SATISH JAGDALE 26

AMEY KADAM 31

GROUP MEMBERS..


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Any kind of property that assessee hold .

* Those assets which are not included undercapital assets : stock in trade, consumable store

and raw materials held by an assessee for thepurpose of business or profession.

Any Income derived from a Capital asset movableor immovable is taxable under the head CapitalGains under Income Tax Act 1961. The Capital

Gains have been divided in two parts under IncomeTax Act 1961.

-One is short term capital gain and other is longterm capital gain.

Meaning of capital gain.


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1.Short Term Capital Gains : If anytaxpayer has sold a Capital asset within 36months and Shares or securities within 12

months of its purchase then the gain arisingout of its sales after deducting therefromthe expenses of sale(Commission etc) andthe cost of acquisition and improvement is

treated as short term capital gain and isincluded in the income of the taxpayer.


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Section 111A of the Income tax Act provides that those equity sharesor equity oriented funds which have been sold in a stock exchange andsecurities transaction tax is chargeable on such transaction of sale thenthe short term capital gain arising from such transaction will bechargeable to tax @10% upto assessment year 2008-09 and 15% fromassessment year 2009-10 onwards.

If an assessee does the business of selling and purchasing shares hecannot take advantage of section 111A or section 10(38). In this caseincome will be treated as business income.

Where some assets are left in block of assets: If a part of such capital

asset forming part of a block of asset has been sold and after deductingthe net consideration received from sale of such asset from the writtendown value of the block of such asset the written down value comes toNIL then the gain arising shall be treated as short term capital gain andin such case where written down value has become NIL no depreciationshall be available on such block of asset even if some assets are

physically left in the block of assets.

Taxability of short term capitalgains:


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2. Long Term Capital Gain: A Capital Asset held formore than 36 months and 12 months in case ofshares or securities is a long term capital assetand the gain arising therefrom is a long term

capital gain. Long term capital gains are arrived atafter deducting from the net sale consideration ofthe long term capital asset the indexed cost ofacquisition and the indexed cost of improvement ofthe asset.


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The long term capital gains are taxed @20% after the benefit of indexation . Nodeduction is allowed from the long term

capital gains from section 80C to 80U. Butin case of individual and HUF where theincome is below the basic exempted limitthe shortage in basic exemption limit is

adjusted against the long term capitalgains.

Taxation of Long term capitalgains:


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Long term capital gain tax ( after availing indextionbenefit ) can be saved by investing amount within6TH month in any of the folllowing 2 schemespecified u/s 54 EC :

( upto rs. 50 lakhs only )

1. Bonds issued by Rural ElectrificationCorporation

2. 2. bonds issued by NHAI ( National HighwaysAuthority Of India )

Section 54 EC


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Thank you ..

capital gain.ppt satish

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