Mode of computation of capital gains prescribes deductions, indexation and special rules for non-residents and unit holders. Mode of computation of capital gains requires deducting transfer-related expenditure and the cost of acquisition and improvements from full consideration; in prescribed cases indexed cost of acquisition and improvement apply using a Cost Inflation Index. Certain deductions (specified interest and securities transaction tax) are disallowed. Special rules reduce cost of acquisition for non-income receipts to unit holders, permit prescribed deductions for specified entities, and require non-residents to compute gains on Indian shares or debentures by converting amounts into the foreign currency of original purchase and reconverting into Indian currency; rupee appreciation on redemption of rupee bonds is ignored for consideration.
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.
Mode of computation of capital gains prescribes deductions, indexation and special rules for non-residents and unit holders.
Mode of computation of capital gains requires deducting transfer-related expenditure and the cost of acquisition and improvements from full consideration; in prescribed cases indexed cost of acquisition and improvement apply using a Cost Inflation Index. Certain deductions (specified interest and securities transaction tax) are disallowed. Special rules reduce cost of acquisition for non-income receipts to unit holders, permit prescribed deductions for specified entities, and require non-residents to compute gains on Indian shares or debentures by converting amounts into the foreign currency of original purchase and reconverting into Indian currency; rupee appreciation on redemption of rupee bonds is ignored for consideration.
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