Capital Gains Exempted U/s - 10

 

1.      Income from sale of shares in certain cases [Section 10(36)]

Any income arising from the transfer of a long-term capital asset, being an eligible equity shares in a company purchased on or after the 1st day of March, 2003 and before the 1st day of March 2004 and held for a period of twelve months or more shall be fully exempted.

2.      Capital gain on compulsory acquisition of urban Agricultural land [Sec. 10(37)]

In the case of an assessee, being an individual or a Hindu undivided family, any income chargeable under the head “Capital gains” arising from the transfer of agricultural land, shall be exempted; where

(i)         Such land is situate in any urban area as specified u/s 2(14)(iii) (a) or (b) i.e. land which is situated within the Municipal limits or within 8 kms. of city limits, if so notified

(ii)        Such land, during the period of two years immediately preceding the date of transfer, was being used for agricultural purposes by such Hindu undivided family or individual, or a parent of his

(iii)       Such transfer is by way of compulsory acquisition under any law, or a transfer the consideration for which is determined or approved by the Central Government or the Reserve Bank of India

(iv)       Such income has arisen from the compensation or consideration for such transfer received by such assessee on or after the 1st day of April, 2004.

For the purposes of this clause, the expression, compensation or consideration” includes the compensation or consideration enhanced or further enhanced by any court, tribunal or other authority.

3. Exemption of long term capital gain [Section 10 (38)]

Any income arising from the transfer of a long-term capital asset, being securities, and the transaction of sale of such securities is entered into in a recognised stock exchange in India on or after the date on which Security Transaction Tax comes into force shall be fully exempted. The Security Transaction Tax has come into force with effect from 1-10-2004.

For the purposes of this clause :

(a)        “securities” shall have the meaning assigned to it in clause, (h) of section 2 of the Securities Contracts (Regulation) Act, 1956(42) of 1956);

(b)       “recognised stock exchange” shall have the meaning assigned to it in clause (J) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).

4. Income from transfer of asset of an undertaking engaged in the business of generation, transmission or distribution of power [Section 10(40)]

Income from transfer of capital asset of an undertaking engaged in the business of generation, transmission or distribution of power where such transfer takes place on or before 3 1-3-2006 and transfer is made to the Indian company as notified u/s 801A.

Note :             It is important to note that the above provisions exempting above capital gains do not require the assessee to invest the sale proceeds or capital gain in any new asset as in the case of exemptions prescribed u/s 54.

 
 

 
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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