The Assessee would be entitled to benefit of indexation under section 48 at the time of redemption of redeemable preference shares. Facts The assessee had subscribed to the purchase of 4 lakh preference shares each of Rs. 100/- of Enam Finance Consultants Pvt. Ltd. in 1992. The preference shares were to carry a dividend of […]
SECTION 48 – MEANING OF FULL VALUE OF CONSIDERATION
Sec. 48 of the Act deals with the methodology to compute capital gains. Section 48 provides that the income chargeable under the head “Capital gains” shall be computed, by deducting cost of acquisition/improvement and expenditure incurred wholly and exclusively in connection with transfer from the full value of the consideration received or accruing as a […]
TAXABILITY OF DEFERRED CONSIDERATION IN CAPITAL GAINS
Section 45 provides for the charge of tax in respect of capital gains. It provides that any profits or gains arising from the transfer of a capital asset shall be chargeable to income-tax under the head “Capital Gains”, and shall be deemed to be the income of the previous year in which the transfer took […]
CIT V CHETAK ENTERPRISES [2020] 115 TAXMANN.COM 108 (SC), (2020) 423 ITR 267 (SC)
The erstwhile partnership firm M/s. Chetak Enterprises entered into an agreement with the Government of Rajasthan for construction of road and collection of road/toll tax. The construction of road was completed by the firm on 27.3.2000 and the same was inaugurated on 1.4.2000. The firm was converted into a private limited company on 28.3.2000 […]
SECTION 47(xiiib) – TAX IMPLICATIONS OF CONVERSION OF COMPANY INTO LLP
Sec 56 of the LLP Act provides for conversion from private limited company into limited liability partnership. Third schedule of the LLP Act deals with procedure and effect of conversion of private limited company into LLP. On conversion, whole of the undertaking of the company shall be transferred to and shall vest in the limited […]