Preface

The scheme of the Income Tax Act is such that income is taxed under any of the five heads of income. One of the most important heads of income is income from 'capital gains'. Statutory provisions relevant to Capital Gains are sections 45 to 55A apart from sections 2(14), 2(29A), 2(29B), 2(42A), 2(47), 111A, 112 and 112A. All these relate to capital gains taxation. Capital gains in itself encompasses six important aspects namely; transfer, chargeability, capital assets, cost of acquisition, computation and exemptions. Firstly, the asset has to be a capital asset and the same ought to have been transferred; it must have some cost of acquisition, except where specifically provided otherwise. It is thereafter that the issue of chargeability to capital gains arises.

This Book titled "Capital Gains Taxation Treatise" is an all pervading study encompassing the law in commentary format as to chargeability, computational aspects supported by illustrative computation samples, etc. This all is supplemented by Case Studies, Real Life Questions with apt Replies. So is the case with the issues of transfer under section 2(47), capital assets as per section 2(14), the nature thereof and taxability under particular situations. The presentation is all time exhaustive, based on a study of 4000 plus case law. Our attempt at maintaining compactness along with exhaustiveness appears to have succeeded, so we believe.

The Finance (No. 2) Act, 2024, has made significant changes in capital gains taxation. Removal of indexation benefit, change in period of holding so as to categorise particular capital asset as long-term asset, change in rates of tax on capital gains are some of the examples of such amendments. Some of the changes relating to capital gains have been made with immediate effect, hence need immediate attention.

In fact the amendments are going to impact each and every one who is reporting income under the head capital gains, hence it becomes necessary to get updated by all such changes alongwith its impact. The present book is being updated giving impact of all recent amendments as and where required. A separate chapter is also devoted to highlight the amendments introduced by the Finance (No. 2) Act, 2024.

The entire subject matter is divided in 16 Parts listed below :

Part A

:

Capital Gains & Chargeability to Tax

Part B

:

Capital Assets

Part C

:

Nature of Capital Asset or Capital Gain

Part D

:

Transfer

Part E

:

Chargeability Under Special Circumstances

Part F

:

Computation of Capital Gains

Part G

:

Land Development Agreements (LDA) and Transferable Development Rights Vis-a-Vis Capital Gains

Part H

:

Exemption from Capital Gains

Part I

:

Rates of Tax on Capital Gains

Part J

:

Capital Gains Vis-a-Vis Shares, Bonds, Debentures, Units & Stock Options

Part K

:

Assessee Specific Capital Gains Taxation

Part L

:

Business Reorganisations

Part M

:

Miscellaneous Issues

Part N

:

Tax Planning Ideas

Part O

:

-- Computational Problems with Solutions

-- Real Life Queries with Replies

-- Illuminating Case Studies with Considered Opinions

I have tried to deal with all dimentions of each part and also gone through all the available case law (of Courts and Tribunal Benches, both) drawing any thing and every thing available therefrom in terms of principle, planning or clarification. I have incorporated in the text as many as around 4000 plus case law, quite a large number of them being Tribunal decisions. Tribunal orders have the opportunity to analyse the latest of the statutory amendments which may come before courts only after decade or so.

An important feature of the book is that, as and where desired, the text of the book is supplemented by apt illustrations with solutions with the view to bring home the conceptual aspects easily and conveniently. That apart, several Tax Planning Ideas are sprinkled over the entire body of the book. Some of the plannings which could not be accommodated in the text pages find place in an independent Part 'N'. Likewise quite a few practice specific computational problems with their solutions are provided in the Part O.

Of special mention is the chapter dealing with shares transactions. The issue regarding taxability of gains from shares dealings has been a contentious and confronting one and a volume of cases have been decided in that regard. We have compiled and analysed as many cases of some worth as available in public domain and tried to deal even with controversies of recent origin as of bogus capital gains from shares transactions.

I sincerely believe that this work of mine would be well received by one and all and will be immensely helpful in understanding the recent changes in capital gains taxation. As always, any constructive suggestions from readers would be ever welcome.

JODHPUR

CA. (Dr.) NISHA BHANDARI

15 NOVEMBER, 2024

 

DEV DIWALI, KARTIK PURNIMA