Capital gains: ULIP payouts and dissolution distributions treated as capital gains with fair market value and cost rules. A new sub-section deems amounts received under certain non-exempt unit linked insurance policies, including bonuses, to be income chargeable under the head 'Capital gains', with taxable income calculated as prescribed. Sub-section (4) is substituted and sub-section (4A) inserted to treat assets or money received on dissolution or reconstitution of non-company/non-cooperative entities as capital gains of the entity: fair market value (or money value) on receipt is deemed full consideration, the capital account balance is treated as cost of acquisition, and increases from revaluation or self-generated goodwill/assets are excluded.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital gains: ULIP payouts and dissolution distributions treated as capital gains with fair market value and cost rules.
A new sub-section deems amounts received under certain non-exempt unit linked insurance policies, including bonuses, to be income chargeable under the head "Capital gains", with taxable income calculated as prescribed. Sub-section (4) is substituted and sub-section (4A) inserted to treat assets or money received on dissolution or reconstitution of non-company/non-cooperative entities as capital gains of the entity: fair market value (or money value) on receipt is deemed full consideration, the capital account balance is treated as cost of acquisition, and increases from revaluation or self-generated goodwill/assets are excluded.
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