ARTS5056 - Taxpublishers.in

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers Print lost in the pages-5 Srivatsan Ranganathan Sometimes amendments are made in the Finance Bill ignoring existing provisions of the law. We will discuss two such provisions in this. Under section 51 read with 56(2)(ix) any advance taken/forfeited for an agreement which falls through is to be deducted from the cost of acquisition or taxed as income from other sources. The two provisions are mutually exclusive meaning if section 51 comes into picture there will be no possibility of section 56(2)(ix) coming into operation. Proviso to section 51 confirms the same. Going forward w.e.f. 23-7-2024 there is no indexation benefit of any long-term capital gains computation. This leads to an anomalous situation in the computation if section 51 is pressed into service instead of section 56(2)(ix) explained in the illustration below. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Print lost in the pages-5

Srivatsan Ranganathan

Sometimes amendments are made in the Finance Bill ignoring existing provisions of the law. We will discuss two such provisions in this. Under section 51 read with 56(2)(ix) any advance taken/forfeited for an agreement which falls through is to be deducted from the cost of acquisition or taxed as income from other sources. The two provisions are mutually exclusive meaning if section 51 comes into picture there will be no possibility of section 56(2)(ix) coming into operation. Proviso to section 51 confirms the same.

Going forward w.e.f. 23-7-2024 there is no indexation benefit of any long-term capital gains computation. This leads to an anomalous situation in the computation if section 51 is pressed into service instead of section 56(2)(ix) explained in the illustration below.