DEEMED CAPITAL GAIN [Section 47A]

In case an asset is transferred from a parent company to a subsidiary company or from subsidiary company to a parent company [Section 47 (iv) or (v)} and

(a)        Such capital asset is converted by the transferee company into or is treated by it as stock- in-trade before the expiry of a period of 8 years from the date of transfer, or

(b)       The parent company or its nominees cease to hold the 100% of share capital of subsidiary company before the expiry of a period of 8 years from the date of transfer, the capital gain which was exempted u/s 47 will become taxable as deemed capital gain of the year in which such transfer took place.

(c)         In case there is breach of any of the conditions prescribed for exemption of capital gain on succession of a firm or a sole proprietary concern u/s 47(xiii) and (xiv), the amount of gain arising from such transfer shall be deemed to be the gain taxable in the hands of successor company in the previous year in which such breach of condition takes place. [Section 47A(3)1

(d)       With effect from assessment year 1998-99 the transferor who has transferred its membership of a recognised stock exchange and has received shares as consideration, such shares cannot be transferred for a period of three years from the date of transfer of membership, the amount of exemption claimed under section 47 shall be deemed as income chargeable to tax under the head capital gains. [Section 47A(2)].

Transfer in case of reverse mortgage [Sec. 47(xa)]

The Finance Act 2008 has inserted a new clause 47 (xa) in Income-Tax Act to provide that any transfer of capital asset in a transaction of reverse mortgage shall not be regarded as transfer and hence shall not attract capital gains tax.

It is further provided that loan received either in lump sum or in installments is a capital receipt and shall be exempted u/s 10.

A borrower, under the reverse mortgage scheme will be liable to income tax (i.e. tax on capital grains) only at the point of alienation of the mortgaged property by the mortgagee for the purposes of recovering of loan.
 
 

More Topics ... @ ' Capital Gain's

Capital Gain , Capital Assets & Property for Computing Capital Gain
Types of Capital Assets for Computing ‘Capital Gain’
Types of Capital Gains for Computing ‘Capital Gain’
Computation Of ‘Period Of Holding
 Transfer Of A Capital Asset [Section-2(47)]
Transactions Not regarded as ‘Transfer’ [Section-47]
Capital Gain is Deemed to be the Income of the Previous Year
Amount Received from insurer [Section-45(1A)] for Computing Capital Gain
Transfer of Capital Assets by a person to firm, AOP or Body Of Individuals (BOI) [Section 45(3)] for Computing Capital Gain
 Enhancement of Compensation on Compulsory Acquisition of Assets [Section-45(5)] for Computing Capital Gain
Sale of units Purchased for Deduction U/s 80 CCB [Section-45(6)]
Distribution of Assets by A Company in Liquidation for Computing Capital Gain
Capital Gain on Purchase by A Company of its Own Shares or Other  Securities [Section 46A]
DEEMED CAPITAL GAIN [Section 47A]
Method of Computing Capital Gain [Section 48]
Expenses Disallowed u/s Section 48 for Computing Capital Gain
Cases in which the Indexation of Cost is not to be done while Calculating long Term Capital Gain
 Computation of Capital Gain in Case of Non-Residents [Sec. 48 Proviso 1 ]
Determination of Cost of Acquisition for Computing Capital Gain.
Taxation of Gain on ‘Slump Sale’ for Computing Capital Gain

Special Provision for full Value of Consideration in certain cases (Section 50C] for Computing Capital Gain
Treatment of Advance Money Received and Forfeited (Section-51] for Computing Capital Gain
Cost of Acquisition of Goodwill [Section-55(2)(a)] for Computing Capital Gain
Cost of Acquisition of Shares [Section 55 (2) (v)] for Computing   Capital Gain
Capital Gains Exempted u/s 10
Capital Gains—Exempted u/s 54
 Capital Gain on Transfer of Self-Cultivated Agricultural Land in Urban   Areas [ Section 54 B]
Capital Gains on Compulsory Acquisition Of Land And Buildings [Section 54D]
 Capital Gain on Transfer of any Long Term Capital Asset [Section-54EC]
Exemption of Capital Gain on Transfer Of Long-Term Capital Assets in case of Investment In Residential House [Section 54F]
Capital Gain on Shifting of Industrial Undertaking from Urban Areas to Non-Urban Areas [Section 54G]
 Exemption of Capital Gain on transfer of assets in case of shifting of Industrial Undertaking from an urban area to any Special Economic Zone (SEZ) [Sec. 54GA]
Long term Capital Gain on Transfer of Residential Property if Net Consideration is Invested in the Equity Shares of an Eligible company [Section 54GB] [w.e.f. A.Y. 2013- 14 but upto A.Y. 201 7-1 8]
Reference to Valuation Officer [Section 55] towards Capital Gain
 TREATMENT OF CAPITAL LOSS [Section 74]
TAX ON CAPITAL GAINS

 
 
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