DT - Capital Gains Flashcards
Exclusion from Capital Assets
- Stock in Trade
- Personal Movable Property but excludes
- Jewelry
- Archeological Collections
- Paintings / Drawings
- Sculptures
- Any work of Art - Rural Agricultural Land
- Gold Deposit Bonds
Period of Holding (Short Term Capital Assets)
- Listed Shares
Zero Coupon Bonds
Units of Equity Oriented Mutual Funds
POH = upto 1 year - Unlisted Shares
Land & Building
POH = upto 2 years - Other Capital Assets
POH = upto 3 years
Period of Holding (Long Term Capital Assets)
- Listed Shares
Zero Coupon Bonds
Units of Equity Oriented Mutual Funds
POH = more than 1 year - Unlisted Shares
Land & Building
POH = more than 2 years - Other Capital Assets
POH = more than 3 years
Transfer
- Sale/ Exchange of Capital Assets
- Possession of ImP in part performance of contract
- Destroyed & amount/ other assets received from Insurance co
- Converted into Stock in Trade
- Introduced to Firm/AOP/BOI by Partner/Member as Capital Contribution
- Distributed on Reconstitution of Specified Entity (Firm/AOP/BOI) to specified person (Partner/Member)
- Compulsory Acquisition of Capital Assets
- Joint Development Agreement
- Distribution on Liquidation of Co
- Buy Back of Shares & Securities
- Slump Sale
Not a Transfer
- Gift/Will
- Total/ Partial Partition of HUF
- Amalgamation/ Demerger of Companies
‣ Transfer of Capital Assets
Amalgamating to Amalgamated
INDIAN Co
‣ Transfer of Capital Assets Demerged
Co to Resulting INDIAN Co
‣ Issue of Shares of Amalgamated
Co to Shareholder of Amalgamating
Co
‣ Issue of Shares of Resulting
Co to Shareholder of Demerged Co - Between Wholly owned Subsidiary Co &
Holding Co (Conditions Applied)(Indian ,
8 years) - Bonds/ Debentures to Shares
- Preference Shares to Equity Shares
- Reverse Mortgage
- Succession of Sole Proprietorship/Firm by
a Company (Conditions Applied) (All
assets , not less than 50% voting power
for at least 5 years , no other contribution
except shares) - Conversion of Private Company or
Unlisted Public Co into LLP ( Condition
Applied) ( Shareholder become partner in
same proportion of their Shareholding , at
least 50% profits of LLP for 5 years , No
amount from accumulated profit for 3
years , Total Turnover / GR does not
exceed 60 lacs in 3 preceding PY , BV of
Assets does not exceed Rs 5 Crores in 3
preceding PY )
Period Of Holding
- Normal Case = Date of Purchase to Date
of Sale/ Transfer - By way of not regarded as Transfer =
Include period of Previous Owner/
Previous Asset - Asset Destroyed = upto date of
Destruction - Into Stock In Trade = upto date of
Conversion - Compulsory Acquisition = upto date of
Compulsory Acquired - Shares in a Co in Liquidation = upto date
of Liquidation
Indexation Benefit not available in these cases
- Bonds & Debentures (Except Capital
Index Bonds and Sovereign Bonds) - Slum Sales
- Depreciable Assets (Always Short term)
- Section 112A i.e. LTCG on specified
assets ( LTCG on Equity Shares , Units of
Equity Oriented Funds , Units of Business
Trust) ( STT Paid i.e. Listed ).
Cost of Acquisition
1.Normal Case
2.Not a Transfer
3.Goodwill / Brand Name /TM/Right/Stage
Permit/Loom Hours
4.Bonus Share
5.Sweat Equity Shares
6.Right Shares
7.Depreciable Assets
8.Assets acquired before 1/4/01
9.Resulting Co to Shareholders of
Demerged Co
- Normal Case = Purchase price (incl all
expense but excl STT) - Not a Transfer = Cost to previous owner
- Goodwill / Brand Name /TM/Right/Stage
Permit/Loom Hours → if generated = Nil
→ If purchased = Purchase Price (minus
depreciation in case depreciation) - Bonus Share → before 1/4/01 = FMV as
on 1/4/01
→ after 1/4/01 = Nil - Sweat Equity Shares = FMV on date at
which options are exercised - Right Shares → If purchased Purchase Price → Sold/ Renounced = Nil
- Depreciable Assets = WDV
- Assets acquired before 1/4/01 = FMV on
1/4/01 or purchase price whichever is
higher (if FMV higher than SDV then
SDV in case of land & Building) - Resulting Co to Shareholders of
Demerged Co = COA of Shared held in
Demerged Co x Net BV of Assets t/f to
Resulting Co / Net Worth of Demerged Co
Section 54
Resident House Property(LTCG)
↓
One Residential House Property
(If CG upto 2Cr then 2HP allowed)
Section 54B
Urban Agricultural Land (STCG/LTCG)
↓
Agricultural Land
Section 54D
Compulsory Acquisition of Land & Building of Industrial Unit (STCG/LTCG)
↓
Land & Building for Industrial Unit
Section 54EC
Land or Building (LTCG)
↓
Bonds of NHAI/RECI redeemable after 5 years
Section 54F
Any Capital Asset except Residential House Property (LTCG)
↓
One residential House property in India
Section 54G
Land & Building, Plant & Machinery of Industrial Unit in Urban Area (STCG/LTCG)
↓
Land & Building, Plant & Machinery of Industrial Unit in Rural Area
Section 54GA
Land & Building, Plant & Machinery of Industrial Unit in Urban Area (STCG/LTCG)
↓
Land & Building, Plant & Machinery of Industrial Unit in SEZ Area
