Wednesday, April 19, 2017

capital gains fy: 2017-18

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FINANCE ACT 2017: TDS & TCS CHANGES
TAXATION OF GIFTS/ DEEMED GIFTS
FINANCE Act, 2017 – OTHER SOURCES
Capital Gains Key Changes FY: 2017-18/AY: 2018-19

Dagliya & Co.,
Charted Accountants

KEY  CHANGES - CAPITAL GAINS - F.Y:2017-18 /A.Y: 2018-19
  • In case of immovable properties Holding period reduced from 36 months to 24 months to qualify as long term capital asset .( please note that other capital assets like jewellery holding period should be 3 years for claiming Long Term)

tax on capital gains u/s 54_54ec
 
  • Joint Development agreements will be chargeable to tax in the year of receipt of completion certificate in the hands of the Individual or HUF.
  • In case asset sold before issue of certificate by competent authority capital gains tax shall be charged in the year in which such transfer takes place.
  • TDS @ 10% would attract on payments made under JDA 


tax rate on capital gains

  • Shift in the base year from 1981 to 2001 for computation of Capital Gains. That is for assets purchased prior to 01.04.2001 indexation benefit will be available on Cost or FMV whichever is higher as on 01.04.2001.  
  • Tax exemption will be available on reinvestment of capital gains in any other notified redeemable bonds (in addition to investment in NHAI and REC) 
  • However maximum amount that can be invested continues to be Rs 50 Lacs. 
  • Exemption of Long Term Capital gain on sale of listed company shares through Stock exchange if STT is paid is amended, that such shares acquired on or after 1st Oct 2004, exemption will be available only if STT is paid at the time of acquisition. Also, List of exceptions is expected to be notified soon. 
  • One must establish that either shares were purchased prior to 1st Oct 2004 or produce evidence that STT was paid at the time of purchase. 
  • Fair Market Value (FMV) deemed to be full value of consideration for arriving at Capital Gains where consideration for transfer of unquoted company is lower than FMV of such shares. 

 new rates on capital gains

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