Search Results For: Exchange of capital asset


QUERY: BP was holding certain shares since 2010 as stock-in–trade. On October 30, 2013, he converted certain shares of public listed companies into capital asset, by passing a journal entry at the book value of Rs. 5 lakhs. He intends to sell the same through stock exchange. He wants to know how his tax liability will be computed?
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Unlike section 45(2), there is no provision under the Income-tax Act, when the stock-in-trade is converted into capital asset. However in the extant case, BP was holding shares of listed companies as stock-in-trade and he had converted the same into capital asset as on October 30, 2013, which he wants to sell through stock exchange. In this case,

QUERY: Mr. Landlord gives its premise to tenant for first time charging premium of Rs. 50/- lakh and monthly rent of Rs. 10,000/- per month. Assessee’s contention is that since it continued to be owner premise, whether tax is payable on premium charged?
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The Supreme Court in A. R. Krishnamurthy & Another v. CIT [176 ITR 417] has held that “the grant of mining lease was transfer of ‘capital asset’ within the meaning of section 45 of the Income-tax Act, 1961. The cost of acquisition of the land would include

QUERY: Y wishes to sell his vacant land. The real estate agent is offering him another piece of land in exchange. Y want to retain the land as an investment and not construct any building. Will the exchange be subject to capital gains even though Y had not received any monetary consideration.
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The definition of transfer under section 2(47) of the Act is an inclusive definition and includes an “exchange”. So, here Y is exchanging his land with another land.