Capital gains computation: revised deduction framework for long term assets distinguishing asset categories and assessees. Section 48, effective 1 April 1988, prescribes that Capital gains are computed by deducting transfer related expenditure and cost of acquisition/improvement from full consideration; for long term capital assets additional deductions apply: an initial basic deduction and, for any residual long term gain, a further deduction calculated by asset category with differing percentage rates for companies and other assessees. The initial basic deduction is allocated between asset categories in a prescribed order and reduced to reflect specified prior deductions; the scheme also applies to long term capital losses.
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Provisions expressly mentioned in the judgment/order text.
Capital gains computation: revised deduction framework for long term assets distinguishing asset categories and assessees.
Section 48, effective 1 April 1988, prescribes that Capital gains are computed by deducting transfer related expenditure and cost of acquisition/improvement from full consideration; for long term capital assets additional deductions apply: an initial basic deduction and, for any residual long term gain, a further deduction calculated by asset category with differing percentage rates for companies and other assessees. The initial basic deduction is allocated between asset categories in a prescribed order and reduced to reflect specified prior deductions; the scheme also applies to long term capital losses.
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