Computation of capital gains: transfers of depreciable block assets trigger short-term capital gains when consideration exceeds block value. Special provision modifies sections 48 and 49 for assets forming part of a depreciable block: if aggregate consideration from transfers of assets in the block during the previous year exceeds transfer expenses, the block's written down value at the beginning of the year, and the actual cost of assets acquired in the year, the excess is deemed short-term capital gains. If a block ceases to exist because all its assets are transferred, the cost of acquisition of the block is the written down value at the beginning of the year increased by actual cost of assets acquired that year, and income from such transfers is deemed short-term capital gains.
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.
Computation of capital gains: transfers of depreciable block assets trigger short-term capital gains when consideration exceeds block value.
Special provision modifies sections 48 and 49 for assets forming part of a depreciable block: if aggregate consideration from transfers of assets in the block during the previous year exceeds transfer expenses, the block's written down value at the beginning of the year, and the actual cost of assets acquired in the year, the excess is deemed short-term capital gains. If a block ceases to exist because all its assets are transferred, the cost of acquisition of the block is the written down value at the beginning of the year increased by actual cost of assets acquired that year, and income from such transfers is deemed short-term capital gains.
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