TOTAL INCOME OF CORPORATE ASSESSEE

INCOME FROM HOUSE PROPERTY

CAPITAL GAINS INCOME FROM OTHER SOURCES

PROFITS AND GAINS OF BUSINESS & PROFESSION

1

INCOME UNDER THE HEAD CAPITAL GAINS

CHARGEABILITY (SEC. 45)

ANY PROFIT OR GAINS ARISING FROM TRANSFER OF CAPITAL ASSET EFFECTED IN THE PREVIOUS YEAR SHALL BE CHARGEABLE TO INCOME TAX UNDER THE HEAD CAPITAL GAINS AND SHALL BE DEEMED TO BE INCOME OF PREVIOUS YEAR IN WHICH THE TRANSFER TOOK PLACE UNLESS SUCH INCOME IS EXEMPT U/S 54,54B,54D,54EC,54ED,54F OR 54G
2

THERE MUST BE CAPITAL ASSET

PROPERTY OF ANY KIND HELD BY THE ASSESSEE

WHETHER BUSINESS

OR

NOT

CONNECTED

WITH

DOES NOT INCLUDE :STOCK IN - TRADE PERSONAL EFFECTS EXCEPT JEWELLERY RURAL AGRICULTURAL LAND IN INDIA CERTAIN BONDS ISSUED BY CENTRAL GOVT. 3

TYPE OF CAPITAL ASSET

SHORT TERM

LONG TERM

SHORT TERM CAPITAL ASSET

HELD BY THE ASSESSEE FOR NOT MORE THAN 36 MONTHS IMMEDIATELY PRECEDING THE DATE OF TRANSFER
4

SHORT TERM CAPITAL ASSET

TWELVE MONTHS FOR : EQUITY OR PREFRENCE SHARES HELD IN THE COMPANY ANY OTHER SECURITY LISTED IN THE RECOGNISED STOCK EXCHANGES IN INDIA UNITS OF UTI OR OF MUTUAL FUND
5

SHORT TERM CAPITAL ASSET

SHARES HELD IN A CO. IN LIQUIDATION PROPERTY ACQUIRED BY GIFT, WILL, ETC.

SHARES IN INDIAN AMALGMATED CO.

SHARES IN INDIAN CO. IN CASE OF DEMERGER

HOLDING PERIOD
RIGHT TO SUBSCRIBE TO SHARES OR ANY OTHER SECURITIES PERSON WHO HAS RENOUNCED THE RIGHT THE PERSON IN WHOSE FAVOUR THE RIGHT HAS BEEN RENOUNCED FINANCIAL ASSET ACQUIRED WITHOUT 7 ANY PAYMENT

LONG TERM CAPITAL ASSET

ASSET WHICH IS NOT A SHORT TERM CAPITAL ASSET HELD FOR MORE THAN 36 MONTHS OR 12 MONTHS AS THE CASE MAY BE TWO TYPES OF CAPITAL GAINS : LONG TERM

SHORT TERM

TRANSFER OF CAPITAL ASSET

[SEC.2(47)]

SALE,EXCHANGE OR RELINQUISHMENT

EXTINGUISHMENT OF ANY RIGHT

COMPULSORY ACUISITION UNDER ANY LAW CONVERSION INTO STOCK IN TRADE

ALLOWING POSSESSION OF PROPERTY IN PART PERFORMANCE OF THE CONTRACT 9

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

DISTRIBUTION OF SHARES BY CO. ON LIQUIDATION DISTRIBUTION OF ASSET BY HUF TO MEMBERS AT THE TIME OF PARTITION UNDER GIFT, WILL OR AN IRREVOCABLE TRUST FROM CO. TO WHOLLY OWNED SUBSIDIARY CO. 10

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

FROM WHOLLY OWNED SUBSIDIARY CO. TO INDIAN HOLDING CO. IN THE SCHEME OF AMALGMATION FROM AMALGAMTING CO TO AMALGAMATED INDIAN CO. FROM DEMERGED CO. TO RESULTING INDIAN CO.
11

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

TRANSFER OF SHARES HELD IN INDIAN CO. BY DEMERGED FOREIGN CO. TO THE RESULTING FOREGN CO PROVIDED : SHAREHOLDERS HOLDING NOT LESS THAN 3/4TH SHARES IN DEMERGED CO. CONTINUE TO BE SHAREHOLDERS OF RESULTING FOREIGN CO. SUCH TRANSFER DOES NOT ATTRACT CAPITAL GAIN TAX IN WHICH THE DEMERGED CO. IS INCORPORATED 12

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

TRANSFER OF SHARES HELD IN INDIAN CO. BY FOREIGN CO. TO ANOTHER FOREGN CO. UNDER AMALGAMATION OF FOREING CO. PROVIDED :

AT LEAST 25% SHAREHOLDERS OF AMALGMATING FOREGN CO. CONTINUE TO BE SHAREHOLDERS OF AMALGMATED FOREIGN CO.
SUCH TRANSFER DOES NOT ATTRACT CAPITAL GAIN TAX IN WHICH THE 13 AMALGMATING CO. IS INCORPORATED

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

TRANSFER OR ISSUE OF SHARES IN SCHEME OF AMALGAMATION AND DEMERGER TRANSFER OF AGRICULTURAL LAND IN INDIA

ART EFFECTS TO GOVT., UNIV., NATIONAL MUSEUMS, NATIONAL ARCHIVES,ETC.

CONVERSION OF BONDS/DEBENTURES/ DEPOSITS INTO SHARES DEBENTURES OF CO.
14

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

TRANSFER OF LAND BY A SICK INDUSTRIAL UNIT TRANSFER OF CAPITAL ASSET BY PARTNERSHIP TO CO. AND CORPORATISATION OF STOCK EXCHANGE PROVIDED : ALL ASSETS AND LIABILITIES OF FIRM WILL BE ASSET AND LIABILITIES OF THE CO. ALL THE PARTNERS BECOME SHAREHOLDERS IN THE SAME RATIO
15

CERTAIN TRANSACTION NOT CONSIDERED TRANSFER (SEC. 45)

NO CNSIDERATION OR BENEFIT OTHER THAN ALLOTMENT OF SHARES SHAREHOLDING 50% OF THE PARTNERS AND CONTINUES FOR 5 YRS TRANSFER OF MEMBERSHIP RIGHT IN STOCK EXCHANGE TRANSFER OF CAPITAL ASSET BY A PROPRIETORY CONCERN WHEN SUCCEEDED BY CO.IN THE BUSINESS CARRIED ON BY IT
16

COMPUTATION OF CAPITAL GAIN

SHORT TERM FIND OUT VALUE OF CONSIDRATION DEDUCT FOLLOWING :o EXP. INCURRED WHOLLY AND EXCLUSIVELY FOR SUCH TRANSFER oCOST OF ACQUISITION LONG TERM FIND OUT VALUE OF CONSIDRATION DEDUCT FOLLOWING o EXP. INCURRED WHOLLY AND EXCLUSIVELY FOR SUCH TRANSFER o INDEXED COST OF ACQUISITION
17

COMPUTATION OF CAPITAL GAIN

SHORT TERM COST OF IMPROVEMENT DEDUCT EXEMPTION PROVIDED U/S 54B, 54D AND 54G LONG TERM oINDEXED COST OF IMPROVEMENT DEDUCT EXEMPTION PROVIDED U/S 54,54B, 54D,54EC,54ED,54F& 54G

BALANCING AMOUNT IS SHORT TERM CAPITAL GAIN

BALANCING AMOUNT IS SHORT TERM CAPITAL GAIN

18

CONSIDERATION
FULL VALUE OF CONSIDERATION FULL VALUE DETERMINED ON NOTIONAL BASIS
SHARES ETC.GIFTED BY EMPLOYEE, ALOTTED UNDER EMPLOYEE STOCK OPTION SCHEME TRANSFER OF LAND/ BUILDING, SALE CONSIDERATION IS LESS 19 THAN STAMP DUTY VALUE MARKET VALUE AT THE TIME OF GIFT VALUE ADOPTED FOR STAMP DUTY VALUATION

CONSIDERATION
INSURANCE CLAIM RECEIVED MONEY DUE TO DAMAGE OR RECEIVED OR DESTRUCTION OF ASSET FAIR MARKET VALUE OF ASSET CONVERSION OF CAPITAL ASSET INTO STOCK IN TRADE FAIR MARKET VALUE ON THE DATE OF CONVERSION TRANSFER OF CAPITAL ASSET AMOUNT BY PARTNER/AOP/BOI AS RECORDED IN CAPITAL CONTRIBUTION THE BOOKS
20

CONSIDERATION
DISTRIBUTION OF CAPITAL ASSET BY FIRM/AOP/BOI TO ITS PARTNERS/MEMBERS MONEY/OTHER ASSETS RECEIVED BY SHAREHOLDERS AT THE TIME OF LIQUIDATION OF CO. MARKET VALUE OF THE ASSET ON THE DATE OF TRANSFER MONEY PLUS MARKET VALUE OF ASSET ON THE DATE OF DISTRIBUTION

21

EXPENDITURE ON TRANSFER

(SEC. 45)

INCURRED WHOLY OR EXCLUSIVELY IN CONNECTION WITH SUCH TRANSFER

NECESSARY TO EFFECT SUCH TRANSFER

COST OF ACQUISTION
VALUE FOR WHICH IT WAS ACQUIRED

CAPITAL EXPENDITURE FOR ACQUIRING THE TITLE TO THE PROPERTY

22

NOTIONAL COST OF ACQUISITION

ADDITIONAL COMPENSATION IN THE CASE OF COMPULSORY ACQUISITION ASSET RECEIVED BY SHAREHOLDER ON LIQUIDATION SHARES RECEIVED ON CONVERSION NIL

MARKET VALUE OF ASSET ON THE DATE OF DISTRIBUTION COST OF ACQUISITION OF SUCH ASSET
23

NOTIONAL COST OF ACQUISITION

ALLOTMENT OF SHARES IN AMALGAMATED INDIAN CO. TO SHAREHOLDERS OF AMALGAMATING CO. COST OF SHARES IN AMALGAMATING CO.

CONVERSION OF SHARES INTO IN RELATION TO DEBENTURES WHICH SUCH ASSET IS ACQUIRED ALLOTMENT OF SHARES 1999-2000 UNDER EMPLOYEE OPTION MARKET VALUE SCHEME AMOUNT 24 ACTUALLY PAID

NOTIONAL COST OF ACQUISITION

ALLOTMENT OF SHARES IN INDIAN CO. TO SHAREHOLDERS OF DEMERGED CO. DEPRECIABLE ASSET COST OF ACQUISTION IN DEMERGED CO * NET BOOK VALUE OF ASSET TRFD. IN DEMERGER + NET WORTH OF DEMERGED CO. OPENING BALANCE OF THE BLOCK OF THE ASSET + ACTUAL COST OF ASSET ACQUIRED DURING THE YR. OF SAME BLOCK
25

NOTIONAL COST OF ACQUISITION

UNDERTAKING ACQUIRED BY NET WORTH OF WAY OF SLUMP SALE SUCH UNDERTAKING NEW ASSET ACQUIRED FOR CLAIMING EXEMPTION U/S 54, 54B, 54D, OR 54G IF IT IS TRANSFERRED WITHIN 3 YRS ACTUAL COST OF ACQUISTION MINUS EXEMPTION CLAIMED UNDER THIS SECTION AMOUNT ACTUALLY PAID

RIGHT SHARES
26

RIGHT SHARES
R HOLDS 100 SHARES OF ABC LTD. WHICH WERE ACQUIRED BY HIM IN 1995 FOR Rs. 10 PER SHARE. THE MARKET VALUE OF THE SHARES AS ON 1-6-2003 IS RS. 250 PER SHARE. THE CO. OFFERS HIM A RIGHT TO SUBSCRIBE TO 100 RIGHT SHARES @ OF RS. 100 PER SHARE. IF R SUBSCRIBES TO SHARES IF R RENOUNCES THE RIGHT IN FAVOUR OF Y @ RS.50 PER SHARE COST TO Y IF HE SUBSCRIBES TO SHARES 27

NOTIONAL COST OF ACQUISITION

GOODWILL OR TRADE MARK OR BRAND NAME OR RIGHT TO MANUFACTURE,CARR Y ON BUSINESS ETC. IF GIFT,WILL ETC. COST OF PREVIOUS OWNER IF PURCHASED ACTUAL COST IF SELF GENERATED ZERO IF ALLOTTED BEFORE 1-4-1981 : FAIR MARKET VALUE ON THAT DATE OTHERWISE - NIL
28

BONUS SHARES

NOTIONAL COST OF ACQUISITION

ANY OTHER CAPITAL ASSET : IF IT BECAME PROPERTY BEFORE 1-41981 BY GIFT, WILL, ETC. COST OF ACQUISTION TO THE PREVIOUS OWNER OR FAIR MARKET VALUE WHICHEVER IS HIGHER COST OF ACQUISTION IF IT BECAME PROPERTY BEFORE 1-4- OR FAIR MARKET VALUE WHICHEVER IS 1981 29HIGHER

COST TO THE PREVIOUS OWNER

[SEC.49(1)]

BECOMES COST TO THE ASSESSEE : ACQUISITION OF PROPERTY

THROUGH PARTITION OF HUF

UNDER GIFT/WILL

BY SUCCESSION, INHERITANCE
DISTRIBUTION OF ASSET ON DISSOLUTION OF FIRM BEFORE 1-4-1987 30

COST TO THE PREVIOUS OWNER

[SEC.49(1)]

ACQUISITION OF PROPERTY :

ON LIQUIDATION OF CO.
TRANSFER TO TRUST

TRANSFER BY WHOLLY OWNED SUBSIDIARY CO. FROM HOLDING CO. TRANSFER BY INDIAN HOLDING CO. CO. FROM ITS WHOLLY OWNED SUBSIDIARY CO.
31

COST TO THE PREVIOUS OWNER

[SEC.49(1)]

ACQUISITION OF PROPERTY :

IN THE SCHEME OF AMALGAMATION

IN HUF WHEN ANY MEMBER HAS CONVERTED HIS SELF ACQUIRED PROPERTY INTO HUF PROPERTY

32

X (HUF) IS HINDU UNDIVIDED FAMILY. THE FAMILY ACQUIRED A HOUSE PROPERTY ON 1-4-2001 FOR RS. 210000. THE FAMILY UNDERGOES COMPLETE PARTITION AS ON 1-11-2001 AND THE HOUSE IS ALLOTTED TO Y, A MEMBER OF THE HUF. Y SELLS THE HOUSE ON 15-3-2004 FOR RS. 690000. DETERMINE THE CAPITAL GAIN IN THE CASE OF TRANSFER OF ASSET BY X(HUF) AND BY Y 33

COST OF ACQUISTION [SEC 55(2)]

BEING FAIR MARKET VALUE AS ON 1-4-1981 OPTION TO TAKE : EITHER FAIR MARKET VALUE AS ON 14-1981 OR ACTUAL COST (OTHER THAN DEPRECIABLE ASSET) ASSET BECAME PROPERTY OF THE ASSESSEE BEFORE 1-4-1981 OR ASSET BECAME PROPERTY OF ASSESSEE BY ANY MODE U/S 49(1) AND IT BECAME PROPERTY OF PREVIOUS OWNER 34

COST OF IMPROVEMENT [SEC. 55 (1)(b)]

GOODWILL OR TRADE MARK OR BRAND NAME OR RIGHT TO MANUFACTURE,CARRY ON BUSINESS ETC NIL ASSET BECAME PROPERTY OF ASSESSEE OR PREVIOUS OWNER BEFORE 1-4-1981 ANY CAPITAL EXP. INCURRED ON ADDITION OR ALTERATION AFTER 1-4-1981. ASSET ACQUIRED AFTER 1-4-1981 EXP. INCURRED BY ASSESSEE WHERE ACQUIRED BY MODE SPECIFIED IN SEC.49(1) ALSO CAP. EXP. 35 INCURRED BY PREVIOUS OWNER

INDEXED COST OF ACQUISTION (SEC. 48) SHORT TERM CAPITAL GAIN

LONG TERM CAPITAL GAIN :

INDEXED COST OF ACQUISITION INDEXED COST OF IMPROVEMENT COST INFLATION INDEX (CII)

APPLIED TO COST OF ACQUISITION

CII OF PREV. YR. IN WHICH ASSET IS TRANSFERRED 36

COST INFLATION INDEX (CII) CII OF YR WHEN ASSET WAS FIRST HELD OR 1-4-81 WHICHEVER IS LATER ASSET ACQUIRED DIRECLY BY ASSESSEE
COST OF ACQUI SITION* CII OF YR OF TRANSFER CII OF YR OF ACQUISITION
ACQUIRED BEFORE 1-4-1981 COST OF ACQISITION OR FMV AS ON 1-4-1981 WHICHEVER *CII OF YR OF TRANS IS MORE 100 (CII OF 1981-82)
37

X purchased a piece of land on 04.01.1978 for Rs.50,000.This land was sold by him on 02.09.2003 for Rs. 6,00,000.The market value of the land as on 01.04.1981 was Rs. 1,20,000. Expenses on transfer were 2% of the sale price.Compute the capital gain for the assessment year 2004-05. What would be the answer if the land was purchased by X on 01.04.1988 for Rs.1,50,000?
38

COST INFLATION INDEX (CII) ASSET ACQUIRED FROM THE PREVIOUS OWNER UNDER MODE GIVEN U/S 49(1)
COST OF ACQUI SITION TO PREVIOUS OWNER * CII OF YR OF TRANSFER CII OF YR OF WHEN ASSET WAS FIRST HELD BY ASSESSEE ACQUIRED BEFORE 1-4-1981 COST OF ACQISITION OR FMV AS ON 1-4-1981 WHICHEVER *CII OF YR OF TRANS IS MORE 100 (CII OF 1981-82)
39

X acquired a land in 1977-78 for Rs. 2,00,000 and gifted it to his son Y on 1.6.1980,when the market value of the land was Rs. 2,50,000.The fair market value of that land as on 01.04.1981 was Rs.3,00,000. Y sold the land on 15.9.2003 for Rs. 14,00,000. Compute the capital gain for assessment year 2004-05. Expenses on transfer were Rs.1,00,000.

What would be the capital gain if the land was gifted by X to his son Y on 15.05.1994?
40

INSURANCE CLAIM [SEC.45(1A)] PROFIT OR GAIN FROM INSURANCE CLAIM RECEIVED FOR DAMAGE OR DESTRUCTION OF PROPERTY DUE TO : FLOOD, HURRICANE,CYCLONE OR OTHER CONVUSION OF NATURE RIOT OR CIVIL DISTURBANCE

ACCIDENTAL FIRE OR EXPLOSION

ACTION BY ENEMY OR ACTION TAKEN IN COMBATING ENEMY 41

INSURANCE CLAIM CAPITAL GAIN SHALL ARISE IN THE YEAR IN WHICH CLAIM IS RECEIVED FULL VALUE OF CONSIDERATION

MONEY OR FMV OF ASSET RECEIVED ON THE DATE OF RECEIPT INDEXATION - UPTO THE DATE OF DAMAGE OR DESTRUCTION
42

R owns a house property which was purchased by him on 01.05.1979 for Rs. 3,00,000. The property was destroyed by fire on 3.4.2003 and R received a sum of Rs. 20,00,000 from the insurance company during the year. The market value of the above property as on 01.04.1981 was Rs. 4,00,000.
43

CONVERSION OF CAPITAL ASSET INTO STOCK IN TRADE [SEC.45(2)] TRNSFER THE YR IN WHICH ASSET IS CONVERTED INTO STOCK IN TRADE CAPITAL GAIN WHEN ASSET IS SOLD OR FURTHER TRANSFERRED INDEXATION - UPTO THE DATE OF CONVERSION

44

X acquired 1000 shares of ABC Ltd. on 4.1.1988 for Rs 10,000. He held shares as investments. On 12.1.1999 he started business of dealing in shares and converted his holding into stock in trade. The market value of the shares as on the date of conversion was Rs. 25 per share. The shares are now reflected in the business of X as stock in trade. The shares were sold in the previous year 2003-04 for a sum of Rs. 30,00 (a ) Compute the capital gain and business income. (b) What would be the answer if the shares are 45 held by the assessee till 31.03.2004?

TRANSFER BY PARTNER/MEMBER TO FIRM/AOP/BOI AS CAPITAL CONTRIBUTION [SEC.45(3)]

CAPITAL GAIN IN THE HANDS OF PARTNER CONSIDERATION : AMOUNT RECORDED IN THE BOOKS OF A/C OF FIRM

46

R acquired a property by way of gift from his father in the previous year 1990-91 when its FMV was Rs. 3,00,000. The father had acquired the property in the previous year 1982-83 for Rs. 2,00,000. This property was introduced as capital contribution to partnership firm in which R became a partner on 5.6.2003. The market value of the asset as on 5.6.2003 was Rs. 10,00,000, but it was recorded in the books of account of the firm at Rs. 7,00,000. Calculate capital gain for R
47

TRANSFER BY FIRM/AOP/BOI BY DISTRIBUTION ON DISSOLUTION OF FIRM/AP/BOI [SEC.45(4)]

CAPITAL GAIN IN THE HANDS OF FIRM

FMV ON THE DATE OF TRANSFER NOT THE VALUE AT WHICH TRANSFERRED COST OF IN THE HANDS OF PARTNER VALUE AT WHICH RECEIVED

48

A firm dissolved on 31.03.2004. The assets of the firm were distributed to the partners as under: Particulars Block of Shares Land Machinery
(Given to P) (Given to Q) (Given to R)

Year of acquisition 1989-90 Cost of acquisition 7,20,000 Market value on 31.03.2004 5,00,000 WDV as on 31.03.2004 4,40,000 Given to Partners 3,00,000 Market value on 1.4.1981 49 --

1993-94 1977-78 40,000 10,000 5,00,000 -3,00,000 -5,00,000 -3,00,000 70,000

COMPULSORY ACQUISITION OF ASSET

[SEC.45(4)]

TRANSFER - IN THE YR IN WHICH ASSET ACQUIRED UNDER LAW INDEXATION - TILL THE YR OF COMPULSORY ACQUISITION CAPITAL GAIN - IN THE YR OF RECEIPT OF COMPENSATION ADDITONAL COMPENSATION ENTIRE AMOUNT LESS EXP. IN THE YR OF RECEIPT 50

X acquired a house for Rs. 20,000 in 1977-78. On his death in October 1986 the house was acquired by his son Y. The market value of the house as on 01.04.1981 was Rs. 80,000. This house was acquired by the Government on 15.03.2002 for Rs. 3,00,000 and a compensation of Rs. 2,20,000 is paid to him on 25.03.2003 and the balance Rs. 80,000 on 15.04.2003. Y filed a suit and the court ordered for giving of additional compensation of Rs. 1,00,000. He incurred an expenditure of Rs. 2,000 in connection with the suit. The additional compensation is received on 14.03.2004.
51

DISTRIBUTION OF ASSET ON LIQUIDATION

[SEC.46(1)]

NOT REGARDED AS TRANSFER BY CO. ANY MONEY OR ASSET RECEIVED BY SHAREHOLDER IS CAPITAL GAIN

52

TRNASFER OF DEPRECIABLE ASSET

(SEC. 50)

TRANSFER OF PART OR ENTIRE BLOCK OF ASSETS, CONSIDERATION IS MORE THAN WDV ON BLOCK OF ASSET

THE COST OF ACQUISTION WOULD BE :

WDV OF BLOCK OF ASSET IN THE BEGINNING OF YR ACTUAL COST OF ASSET ACQUIRED DURING THE YR. 53

TRANSFER OF DEPRECIABLE ASSET

SITUATION 1.
BLOCK OF ASSET DOES NOT CEASE TO EXIST BUT THE TRANSFER MONEY EXCEED THE SUM OF : EXP. INCURRED FOR TRANSFER WDV OF BLOCK OF ASSET IN THE BEGINNING OF YR ACTUAL COST OF ASSET ACQUIRED DURING THE YR.

SITUATION II
ALL ASSETS IN THE BLOCK OF ASSETS ARE 54 SOLD DURING THE YEAR

ASSET PLANT P PLANT Q

RATE OF DEP. 25% 25%

WDV AS ON 1.4.2003 80000 60000

ASSETS ACQUIRED DURING THE YR.

PLANT R PLANT S

25% 25%

40000(15.4.03) 20000 (15.9.03)

PLANT P SOLD FOR RS. 220000 ON 15.3.04 (a)COMPUTE CAPITAL GAIN (b) C G IF PLANT P IS SOLD FOR RS. 180000
55

TRNASFER BY HOLDING CO. TO WHOLLY OWNED SUBSIDIARY CO. OR VICE VERSA [SEC.47A(1)]

NOT CONSIDERED TRANSFER PROVIDED

UPTO 8 YRS FROM TRANSFER DATE: THE ASSET IS NOT CONVERTED INTO STOCK-IN TRADE BY TRNASFEREE HOLDING CO. CONTINUES TO HOLD 100% SHARE IN SUBSIDIARY CO.
56

EXEMPTION TRANSFER OF UNITS OF UNIT 64 IF TRANSFER TAKES PLACE AFTER 1.4.02 LTG ON EQUITY SHARES AND UNITS OF EQUITY LINKED MUTUAL FUND IF STT PAID TRANSFER TAKES PLACE AFTER SEPT2004 SHORT TERM CAPITAL GAIN TAX 10%
57

EXEMPTION COMPULSORY ACQUISITION OF LAND AND BUILDING OF INDUSTRIAL UNDERTAKING UNDER LAW (SEC.54D) USED BY ASSESSEE FOR BUSINESS AT LEAST FOR 2 YRS BEFORE ACQUISTION C G TO THE EXTENT INVESTED IN LAND/BUILDING WITHIN 3 YRS AFTER DATE OF ACUISITION NEW BUILDING/LAND IS NOT 58 TRFD.WITHIN 3 YRS OF ACQUISITION

DEPOSIT IN CAPITAL GAIN ACCOUNT SCHEME 1988 (SEC.54D) DEPOSIT BEFORE DUE DATE OF FILING OF IT RETURN NEW ASSET TRFD. WITHIN 3 YRS FROM THE DATE ACQUSITION : o EXEMPT CG TO BE REDUCED FROM COST OF NEW ASSET

59

ABC Ltd. Purchased a building for industrial undertaking on 1.1.2000 for Rs. 400000. The property was compulsorily acquired by Govt. on 14.8.03 ad compensation of Rs. 500000 was given to the Co. on 21.3.04. The Co. purchased another building for Rs. 300000 on 15.10.04 for shifting its industrial undertaking.
60

EXEMPTION LCG IF INVESTED IN CERTAIN BONDS

(SEC.54EC)

TRANSFER OF LONG TERM ASSET ON OR AFTER 1.4.00

LCG TO THE EXTENT INVESTED WITHIN 6 MONTHS IN SPECIFIED LONG TERM ASSETS

LONG TERM SPECIFIED CAPITAL ASSET CONVERTED OR TRANSFERRED INTO 61 MONEY WITHIN 3 YRS

LONG TERM SPECIFIED ASSETS

(SEC.54EC)

BONDS REDEEMABLE AFTER 3 YRS NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD)

NATIONAL HIGHWAYS AUTHORITY OF INDIA RURAL ELCECTRIFICATION CORP. LTD.

NATIONAL HOUSING BANK

SIDBI

62

R acquired shares of G Ltd on 15.12.98 for Rs. 5,00,000 which were sold on 15.5.03 for Rs. 13,50,000. Expenses of transfer were Rs. 20,000. He invests Rs. 6,00,000 in the Bonds of National Highway Authority Of India on 16.10.03
63

SHIFTING OF INDUSTRIAL UNDERTAKING FROM URBAN AREAS (SEC.54G) TRANSFER OF MACHINERY,PLANT BUILDING,LAND USED FOR BUSINESS : ON SHIFTING OF INDUSTRIAL UNDERTAKING FROM URBAN AREA SHORT OR LONG TERM CG CG IS INVESTED 1 YR. BEFORE OR 3YRS AFTER IN SPECIFIED ASSET : o PURCHASE OF LAND, BUILDING, MACHINERY OR PLANT, o EXP. ON SHIFTING 64

R LTD owns industrial undertaking in Delhi owns following assets: WDV as on 1.4.03 Plant & Machinery 30,00,000 Building 12,00,000 Furniture 50,000 Land Cost of Acquisition in 1978 2,00,000 FMV as on 1.4.81 3,00,000 R Ltd shifts from urban area to other area and sells the assets and acquires new assets for Rs. : Plant & Machinery 30,00,000 Building 40,00,000 Furniture 60,000 Land 15,00,000 New assets acquired during 1.1.04 to 31.10.04 Plant & Machinery 12,00,000 65 Building 31,60,000