Capital Gains - Income Tax Notes Part - 05
Capital Gains INCOME TAX NOTES PART - 05 CAPITAL GAINS Basis of Charge [Sec. 45] Income is taxable under the head “Capital Gains” if the following conditions are satisfied: 1. There should be a capital asset. 2. The capital asset is transferred by the assessee during the previous year. 3. Any profit or gains arises as a result of such transfer. 4. Such profit or gains is not exempt from tax under section 54, 54B, 54D, 54EC, 54EE, 54F, 54G, 54GA and 54GB. If the aforesaid conditions are satisfied, then capital gain is taxable in the assessment year relevant to the previous year in which the capital asset is transferred. Capital Asset [Sec. 2(14)] “Capital asset” means – 1. Property of any kind held by an assessee (whether or not connected with his business or profession). 2. Any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the SEBI Act. However, “capital asset” does