CAPITAL GAINS

Dr CMA T K SRIDHAR

Capita
l
Asset
Not
u/s 54

Taxab
le
Event
[CG]

P/G

Transfe
r

In PY

PE
Stock

Gold
Bond
s
1999

Not
Cap.
Ass

Furniture ,
car, TW,
Pooja Items &
Movable

Person
al
Effect
Not PE

Rural
Land
10k Pop +
Notified Govt

Rural
AgriLand

Jewellery,
Painting,
Archaeologic
al
Immovable

Transfer

2(47)

Sale
Extinguish - Right
Compulsory Acquisition
Convert [Stock Cap.
Ass]
Transfer of Property
Act , 82
Allotment Building
0 Coupon Bond

Redemption of PSC
Reduction of Share FV

CG[L]
LTCG

STCG

[36m+]
s.2(29B)

36ms.2(42BA)

Depre.

Nondep

12m+/E/PSC Q/U
Sec.
BSE/NSE
Units

0 coupon
bond

S.48
STCG/L
LTCG/L
Considerati
Consideratio
on
n
- Cost of
- Cost of Trans
Trans

- Cost of Acq - Ind Cost of

Acq
- Cost of Imp. - Ind Cost of
Imp

Indexation
Ind.

COA = COACII of [yr of

Transfer] / CII of WEL [yr of acq. or
1.4.81]

Ind.

COI = COICII of [yr of Transfer] /

CII of yr of Imp.

No

Deduction STT
COI before 1.4.81 NA
Ind NA= Bonds / Debenture

NO INDEXATION
TRANSFER
115AB
115ACA GDR
115AD FIIs

Bond/
Deb
[Not
Govt]

Share
+
Deb
[FE]
Dep.
Ass

Slump
Sale
[s.50B]

COA [s.55]
COA

= [I.4.81-] = WEH [Cost or FMV in

1981]

COA

= [1.4.81+] = Cost

Liquidation
Share

= FMV on Distribution

ref: after

COA [s.

55] - SHARE

Primary market = Allotment

Price
Secondary Market = Price +
Brokerage
Bonus Share = 0 [FMV if 1981-]
Right Share [original] = Price
Renounce = 0
Right Share [other] = Price [Share
+ Right}

COI
COI = [1981-] = NA
COI = [1981+] = Taken +
Indexation [Imp]

Deemed COA = COA of PO

Merge
r

HUF
Partition

Gift /
Will

S. 47

HC
SC

Dist
.
-Liq
.

Inheri
t

Insurance Claim
[S.45(1A)]
Fire

Natural
Calami
ty

Riot

Enemy
Action
SC = Claim
Period = DOA DODestruction
Indexation Yes [Upto DOD]
Taxable On receipt of claim

CA Stock [S.45(2)]
CG = FMV on Conver.
Ind/COA/Imp

PGBP =

SC FMV
+

DEMAT [S.45(2A)]

COA

POH

FIF
O

Partner Firm [S.45(3)]

BV

I/CO
A

CG

Firm Partner [S.45(4)]

FMV

I/CO
A

CG

Comp. Acq. [S.45(5)]

S.45(1A)
CG

= Enhan. Comp. L. Exp

CG

[Red. Comp] = Recompute

Liq. of Comp. SH [S.46]

Not
CG

S.47

of SH = (Cash + FMV [div-])

COA
Period

CG

= Upto Liq.

(Sale of Asset) = SC - FMV

Buy-back Share [S.46A]

CG

BBC

COA

Slump Sale [S.50B]

Sale for Lump-sum Consideration
CG = SC Net Worth [by CA]
No Indexation
LTCG = 36m+
COA = 0 if S.35AD

Adv. Money FF [S.51]

Indexation
Applicable

Ref to VO by AO [S.55A]
For FMV
Value + VO claimed < FMV
+
Estimate VO (+15% or 25k) <
FMV
+
AOs Opinion

NRI [S.115A]

FC
NSC

COA

HC

AT

AT

STCG [S.111A]
ESC + Units + Equity MF 65%
Recognised St. Exchange
STT
After 1.10.2004
No Deduction [VI-A]
Taxable Limit
LTCG [S.10(38)] - exempt

Exempt Comp. Acq Agri Land

[S. 10 (37)]

I+HUF
Used Agri 2 yrs [parents]
Consideration [C. Govt / RBI]
After 1.4.04

0 coupon bond
Infra Bond [after 1.6.05]
[S.2(48)]
LTCG [S12-]

S.112

Reverse Mortgage [S.10.

(43)]
Senior Citizen
Lump-sum / installment [60%]
Revalue [once in 5 yrs]
Heir = Sale - Loan

D
E
D
U
C
TI
O
N
S

54

54B

54D

54EC

54F

AssetH

R-HP

AgriLand

LBindus

Any

Any [R-HP]

I+HUF

LT

LT/ST

LT/ST

2 yrs
used

2 yrs
used

Depos
it

PM/LB Indus
[Urban]

LT

LT

LT/ST

LT/ST

RECL/
NHWA

R-HP

Rural

SEZ

6m

P [12]
C [13]

1-3

1-3

NA

Exem
pt
Revok
e

54GA

I+HUF

AssetP
P [12]
C [13]

54G

Propor
3

3+[2/
3]

ST

St

ST

LT

LT

ST

ST