13 Aug 2018

Capital Gains Tax

Finance feed by:

CA Abhishek Sinha
M.com,CA,CS
CA in Practice
Warning: Division by zero in /var/www/vhosts/finaco.in/httpdocs/view_finance_feed.php on line 230
   •    14 Year 4 Month  experience

Capital gains is the profit that the assesee realizes when he sells the capital asset for a price higher than its purchase price. The transfer of capital asset must be made in the previous year. This is taxable under the head ‘Capital Gains’ and there must exist a capital asset, transfer of the capital asset and profit or gains arising from the transfer.

Capital Gains include any property held by the assesse except the following:

Stock in trade.
Consumable stores or raw materials held for the purpose of business or profession.
Personal effects that are movable except jewellery, archaeological collections, drawings, paintings, sculptures or any art work held for personal use.

Gold Deposit bonds under Gold Deposit Scheme.

6.5 percent Gold Bonds, National Defence Gold Bonds and Special Bearer Bonds.
Agricultural land. The land must not be located within 8kms from a municipality, Municipal Corporation, notified area committee, town committee or a cantonment board with a minimum population of 10,000.

---