How many months are long term capital gains?

Key Takeaways. Long-term capital gains or losses apply to the sale of an investment made after owning it 12 months or longer. Long-term capital gains are often taxed at a more favorable tax rate than short-term gains.

Which of the following is included in the definition of transfer under section 2 47?

Transfer, in relation to capital asset, includes: the sale, exchange or relinquishment of the asset; or. the extinguishment of any rights therein; or. the compulsory acquisition thereof under any law; or.

Which assets are not treated as capital assets?

Any movable property (excluding jewellery made out of gold, silver, precious stones, and drawing, paintings, sculptures, archeological collections, etc.) used for personal use by the assessee or any member (dependent) of assessee’s family is not treated as capital assets.

What are the types of capital gains?

The two types of Capital Gains are:

  • Short-Term Capital Gain.
  • Long-Term Capital Gain.

What Cannot be considered as transfer?

For example, the public or religious uses or services cannot be transferred. If any transfer whose object is unlawful or has unlawful consideration is not permissible under this section. Also if the property is transferred to someone who is disqualified legally to be a transferee then such transfer is not valid.

Under which head family pension is taxable?

income from other sources
Pension received by a family member is taxed under the head ‘income from other sources’ in family member’s income tax return. If this pension is commuted or is a lump sum payment, it is not taxable. Uncommuted pension received by a family member is exempt to a certain extent.

Is jewellery a capital asset?

Although jewellery is a movable property which can used for personal purpose but it is excluded from the purview of personal effect. For capital gain purpose jewellery is a capital asset. Archaeological collections, Drawings, Paintings, Sculptures or any other work of art are also treated as capital asset.

Is car a capital asset?

Capital asset, as defined by Sec 2(14) of ITA does not include items held for personal use such as furniture, air-conditioners, refrigerators, motor cars etc. Therefore, a car used for personal purpose (depreciation is not charged), is not a capital asset.

What is the 6 year rule for capital gains?

Under the six-year rule, a property can continue to be exempt from CGT if sold within six years of first being rented out. The exemption is only available where no other property is nominated as the main residence.

How much capital gain is tax free in India?

Residential Indians between 60 to 80 years of age will be exempted from long-term capital gains tax in 2021 if they earn Rs. 3,00,000 per annum. For individuals of 60 years or younger, the exempted limit is Rs. 2,50,000 every year.

What is section 47 of the Income Tax Act 1961?

Section 47 of Income-tax Act 1961-2017 – Transactions not regarded as transfer. Chapter IV (Sections 14-59) of Income Tax Act, 1961 deals with provisions related to computation of total income. Section 47 of Income Tax Act 1961-2017 provides for transactions not regarded as transfer.

When was the clause (Vica) of Section 47 amended?

[Clause (vica) of section 47 has been amended (inserted) w.e.f. 1st April, 2021 by the Finance Act 2021]

Is the amended provision of Section 47 relevant for 2022-23?

The amended provision of section 47 is effective for financial year 2021-22 relevant to the assessment year 2022-23.

When was the Income Tax Act first introduced?

Inserted by the Finance (No. 2) Act, 1967, w. e. f. 1- 4- 1967. 3. Inserted by the Finance Act, 1992, w. e. f. 1- 4- 1993.