The Karnataka State Chartered Accountants Association (KSCAA) has formally approached the Central Board of Direct Taxes (CBDT) seeking urgent clarification on the denial of rebate under Section 87A of the Income Tax Act for Short-Term Capital Gains (STCG) taxed under …
In a significant judgment dated March 24, 2025, the Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favour of a taxpayer, redefining how long-term capital gains (LTCG) are calculated on real estate transactions. The Tribunal held that the date of …
Some CIT(A) rulings have supported the taxpayer’s interpretation that the 87A rebate should apply to total income, including capital gains. However, until a clear judicial or legislative resolution is established, the issue remains contentious. A major controversy has emerged surrounding …
CBDT circular dated January 21, 2015 clarifies that the benefit under Section 54F and Section 54 is limited to one residential house. A recent Delhi High Court ruling denied capital gains tax exemption under Section 54F of the Income Tax …
The ITAT Jaipur underscores the need for a detailed examination of rural land transactions for tax purposes, especially when the property is near urban canters. In a significant ruling, the Income Tax Appellate Tribunal (ITAT) in Jaipur has upheld the …
The ITAT also rejected the AO’s argument that the capital gains exemption should only cover the amount directly used for constructing the new house. The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a taxpayer can …
Changes in Capital Gain Taxation by Finance (No.2) Bill, 2024 Q1. What are the major changes brought about in the taxation of capital gains by the Finance (No.2) Bill, 2024? A1. The Finance (No.2) Bill, 2024, introduces significant rationalisation and …
Understanding Short-Term Capital Gain on Shares Capital gains can be realized while trading shares, either as long-term or short-term gains. Typically, a seller aims to achieve a short-term capital gain when selling shares at a higher price than their purchase …
Understanding Capital Gains on Sale of Shares Profits or gains arising from the sale of shares are classified as capital gains under the Income Tax Act. These gains can be categorized as short-term or long-term, depending on the holding period …
Capital Gain Account Scheme The Capital Gains Account Scheme (CGAS) provides a valuable opportunity for taxpayers to defer capital gains tax liabilities arising from asset sales, such as property. By utilizing CGAS, taxpayers can park their gains in designated accounts, …
Understanding Capital Gain Tax on Transfer of Shares Capital Gain on Share Transfers: Navigating the tax landscape for transferring shares in India involves various considerations. Factors such as the holding period, acquisition method (primary market, secondary market, gift, inheritance), market …
Tax Exemption on Long-Term Capital Gain on Sale of Jewellery to Purchase a House. Capital Gain Tax Exemption on Sale of Jewellery: Are you considering selling your jewellery to fund your dream home? Understanding the tax implications and exemptions can …
Facts of the Case In a recent judgment on 12th September 2023, the Bombay High Court ruled on a case involving the amendment of Section 54F in 2015 and its prospective application. The case, Hemant Dinkar Kandlur Vs Commissioner of …
Introduction Capital Gain Tax on Sale of Securities: Capital gains tax is a crucial aspect of the investment world, one that demands careful attention and consideration from investors. As far as capital gain tax on sale of securities is concerned, …
Introduction Capital gains refer to the profit earned from the sale of a capital asset, such as stocks, bonds, or real estate. In simple terms, if the selling price of the asset is higher than its purchase cost, the difference …