Professional Documents
Culture Documents
Income Under The Head Capital Gains - First Three Sessions
Income Under The Head Capital Gains - First Three Sessions
Questions:
2. Personal Effects
b. Archaeological collections
c. Drawings
d. Paintings
e. Sculptures
f. Any work of art
Case 1:
Case 2:
Case 3:
Agricultural land situated at 6 km from Delhi, but
has been declared as Urban Area by Government.
Case 4:
Case 5:
2. Land
3. Personal computer
4. Jewellery
5. Diamonds
6. Equity shares
7. Goodwill of a business
8. Urban Agricultural land
9. Debentures of X Ltd.
10. Gold for a Jeweller
11. Machine used in a cloth business
12. Personal music system
13. Mutual fund units
14 Silver Utensils
15 Siver Bars & Silver Coins
Some Definitions:
“securities” include—
(i) shares, scrips, stocks, bonds, debentures,
debenture stock or other marketable securities
of a like nature in or of any incorporated
company or other body corporate;
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India. The history
of mutual funds in India can be broadly divided into four distinct phases
Unit Trust of India (UTI) was established in 1963 by an Act of Parliament. It was set up
by the Reserve Bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At
the end of 1988 UTI had Rs. 6,700 crores of assets under management.
1987 marked the entry of non-UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.
47,004 crores.
OR
Cost of Acquisition x CII of the year in which the asset was transferred
CII of the year in which the asset was purchased
18,00,000x289
100
Less: Cost of NIL
improvement1 =
Improvement before
01.01.2001
Less: Cost of 12,78,761
improvement 2 =
5,00,000 x 289
113
11,00,000 x 289
280
Charge of
Cap Gain +
PGBP
Juhi
Juhi purchases 13 lakhs Enterprises
diamonds on FMV sales the
12.01.2010 diamonds on
Juhi converts 15.06.19
5 lakhs
diamond into 17 lakhs
transfer Stock in Trade Sale Con.
on 22.05.2017
Mr Sudipto purchased a capital asset on
1/1/2011 for Rs 5 lacs. On 10/12/2016, he
converted this asset into stock in trade. FMV
as on 10.12.2016 is Rs 11 lacs. On 1/2/2020,
he sold this stock for Rs 20 lacs. Calculate
his income and ascertain the year when
capital gain will arise.
Imp:
Indexation is allowed only till date of transfer.
PGBP and Capital Gains would only charged in
the eventual year of sale of capital asset.
FMV value on date of transfer is the FVC ( Full
Value of Consideration) for calculating Capital
Gains.
TRANSFER OF SECURITIES HELD IN A
DEPOSITORY [S 45(2A)]
India adopted dematerialized form of Security
sales through Depositories since 1996. This
was done to avoid problems like problems of
fake documents, stolen shares, forged &
mismatched signatures, mutilation and duplication
of share certificates and other transfer problems
which led to multiple arbitration cases and other
investor disputes.