Chargeability Under the Head “Capital Gains” - (New) Section 67(1) / (Old) Section 45(1)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income-tax Act, 2025. For taxation under this provision, the following conditions must exist: • (A) There must be a Capital Asset • (B) There must be a Transfer • (C) Profit or Gain Must Arise Special Exemption from taxation - save as otherwise provided in sections 82, 83, 84, 85, 86, 87, 88 and 89 Ye....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ear of receipt. CBDT has prescribed Rule 49 for computing such capital gains. [ Section 67(5) ] • Conversion into Stock-in-Trade - Capital Gains arising on conversion of capital asset into stock-in-trade shall be taxable in the year of in which stock-in-trade is sold although transfer takes place in the year of conversion. [Section 67(6)] • Compulsory Acquisitio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....2026 ] General Rule Any profit and gains arising from transfer of a capital asset effected in the previous year shall be chargeable to income tax under the head capital gains in the previous year in which transfer took place unless such capital gain is exempt  u/s 54, 54B, 54D, 54E, 54EA, 54EB, 54F, 54G, and 54H. Exception of Year of Taxability unde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... - Capital Gains arising on conversion of capital asset into stock-in-trade shall be taxable in the year of in which stock-in-trade is sold although transfer takes place in the year of conversion. [Section 45(2)] • Compulsory Acquisition - Gains from compulsory acquisition or government/RBI-approved asset transfers are taxable in the year the initial or enhanced compensation....