Sign Up

Continue with Google
or use


Have an account? Sign In Now

Sign In

Continue with Google
or use

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

You must login to ask question.

Continue with Google
or use

Forgot Password?

Need An Account, Sign Up Here
Taxchopal Logo Taxchopal Logo
Sign InSign Up

Taxchopal

Taxchopal Navigation

  • Home
  • About Us
  • Services
  • Blog
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Services
  • Blog
  • Income Tax
  • GST
  • Accountancy
  • Finance
  • Corporate Laws
  • Others
  • Users
  • Home
  • About Us
  • Services
  • Blog
Home/Questions/Page 59

Taxchopal Latest Questions

Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

What is long-term capital gain and short-term capital gain?

  1. CA Vishnu Ram Enlightened
    Added an answer on April 2, 2025 at 4:37 pm

    Section 48 of the Income Tax Act, 1961 provides the basic formula for computing capital gains: Section 48 – Computation of Capital Gains:“The income chargeable under the head ‘Capital Gains’ shall be the difference between the full value of consideration received or accruing from the transfer of a cRead more

    Section 48 of the Income Tax Act, 1961 provides the basic formula for computing capital gains:

    Section 48 – Computation of Capital Gains:
    “The income chargeable under the head ‘Capital Gains’ shall be the difference between the full value of consideration received or accruing from the transfer of a capital asset and the cost of acquisition of the asset and the cost of any improvement to the asset, as reduced by the expenditure incurred in connection with the transfer.”

    Holding Period Criteria:

    • Listed Equity Shares/Equity Mutual Funds: Assets held for 12 months or less are classified as short-term.

    • Immovable Property (land, buildings): Assets held for 24 months or less are considered short-term.

    • Other Assets (e.g., jewelry, debt funds): Generally, assets held for 36 months or less fall into the short-term category.

    Note: Although Section 48 does not explicitly define “short-term” or “long-term” capital gains, the classification depends on the holding period prescribed for various asset types under the Act and subsequent notifications.

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 12 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

What is a capital assets?

  1. CA Vishnu Ram Enlightened
    Added an answer on April 2, 2025 at 4:50 pm

    As per Section 2(14) of the Income Tax Act, 1961): "Capital asset" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include—(a) Stock-in-trade, consumable stores, or raw materials held for the purpose of business;(b) Personal effeRead more

    As per Section 2(14) of the Income Tax Act, 1961):

    “Capital asset” means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include—
    (a) Stock-in-trade, consumable stores, or raw materials held for the purpose of business;
    (b) Personal effects, that is, movable property held for personal use, other than jewelry.”

    as per above difinartion below is the summary:

    • Not Included as Capital Assets:

      • Business-Related Items: Items like inventory, raw materials, or consumable stores that are used in the course of business.

      • Personal Effects: Generally, personal belongings (like furniture, clothes, etc.) are not considered capital assets—except for jewelry, which is treated as a capital asset.

    • What Is Included as Capital Assets:

      • Investment Properties: Land, houses, or commercial properties.

      • Financial Assets: Shares, mutual funds, bonds, and other securities.

      • Other Valuable Assets: Items like valuable artworks or collectibles can also qualify, provided they are not held as stock-in-trade.

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 13 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

Which income is charged to tax under the head “Capital Gains”?

  1. CA Vishnu Ram Enlightened
    Added an answer on April 2, 2025 at 4:54 pm

    According to Section 48 of the Income Tax Act, 1961, the income chargeable under the head “Capital Gains” is determined as follows: Section 48 – Computation of Capital Gains:“The income chargeable under the head ‘Capital Gains’ shall be the difference between the full value of consideration receivedRead more

    According to Section 48 of the Income Tax Act, 1961, the income chargeable under the head “Capital Gains” is determined as follows:

    Section 48 – Computation of Capital Gains:
    “The income chargeable under the head ‘Capital Gains’ shall be the difference between the full value of consideration received or accruing from the transfer of a capital asset and the cost of acquisition of the asset and the cost of any improvement to the asset, as reduced by the expenditure incurred in connection with the transfer.”

    How Is This Gain Computed?
    The gain is calculated by taking the full value of the consideration (i.e., the sale price or the value received) and subtracting:

    • Cost of Acquisition: The amount you originally paid for the asset.

    • Cost of Improvement: Any additional costs incurred to enhance or upgrade the asset.

    • Expenditure on Transfer: Any expenses directly related to the sale (such as brokerage fees or legal charges).

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 11 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

Would any taxability arise if an immovable property is received for less than its stamp duty value?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 4:56 pm

    Yes, if an immovable property is received for less than its stamp duty value, taxability arises on the basis of the higher stamp duty value as per Section 50C. This means you are required to compute your capital gains—and subsequently pay tax—using the stamp duty value as the full consideration forRead more

    Yes, if an immovable property is received for less than its stamp duty value, taxability arises on the basis of the higher stamp duty value as per Section 50C. This means you are required to compute your capital gains—and subsequently pay tax—using the stamp duty value as the full consideration for the property transfer.

    As per Section 50C – Valuation of Immovable Property:
    “Where the consideration for the transfer of an immovable property is less than the value adopted or assessed by the Stamp Valuation Authority, then, for the purposes of computing capital gains, the latter value shall be deemed to be the full value of consideration received or accruing as a result of such transfer.”

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 11 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

Are gifts of immovable property received by an individual or HUF charged to tax?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:01 pm

    As per Section 56(2)(vii) of the Income Tax Act, 1961): “Where any immovable property is received by an individual or a Hindu Undivided Family (HUF) as a gift without consideration, if the stamp duty value of such property exceeds ₹50,000 and the donor is not a relative as defined under the Act, theRead more

    As per Section 56(2)(vii) of the Income Tax Act, 1961):

    “Where any immovable property is received by an individual or a Hindu Undivided Family (HUF) as a gift without consideration, if the stamp duty value of such property exceeds ₹50,000 and the donor is not a relative as defined under the Act, then the entire value of such property shall be taxable under the head ‘Income from Other Sources’.”

    Summary:

    • No Tax on Gifts from Relatives:
      Immovable property received as a gift from a relative is exempt from tax, regardless of its value.

    • Tax on Gifts from Non-Relatives:
      Immovable property received as a gift from a non-relative is taxable if its stamp duty value exceeds ₹50,000; in such cases, the entire value is treated as income and taxed accordingly.

     

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 10 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

How are gifts of movable property received by an individual or HUF charged to tax?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:03 pm

    As per Section 56(2)(x) of the Income Tax Act, 1961): “Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources,Read more

    As per Section 56(2)(x) of the Income Tax Act, 1961):

    “Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources, unless it is received from a relative.”

    Explanation:

    • What Are Gifts of Movable Property?
      In this context, “movable property” includes assets such as money, shares, jewelry (other than immovable property like land or buildings), and other tangible or intangible items that are not fixed to one location.

    • Taxability Criteria:

      • From Relatives:
        Gifts received from relatives are exempt from tax, regardless of their value.

      • From Non-Relatives:
        If you receive gifts (whether in the form of money or movable property) from non-relatives and the aggregate value of these gifts during the financial year exceeds ₹50,000, then the entire value of the gift is taxable under the head “Income from Other Sources.”

      • Threshold Limit:
        If the total value of such gifts does not exceed ₹50,000 during the year, they are not taxable.

     

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 10 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

If the aggregate value of gift received during the year by an individual or HUFexceeds Rs. 50,000, whether total amount of gift will be charged to tax or only the amount in excess of Rs. 50,000 will be charged to tax?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:04 pm

    If you receive gifts (movable property or money) from non-relatives and the total value during the year exceeds ₹50,000, the whole amount is charged to tax under the head “Income from Other Sources.” This provision prevents individuals from circumventing tax by receiving multiple gifts just under thRead more

    If you receive gifts (movable property or money) from non-relatives and the total value during the year exceeds ₹50,000, the whole amount is charged to tax under the head “Income from Other Sources.”

    This provision prevents individuals from circumventing tax by receiving multiple gifts just under the threshold from non-relatives.

    Please refer to seection 56(2)(x) of the Income Tax Act, 1961):

    “Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources.”

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 11 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

Are monetary gifts received from abroad liable to tax?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:05 pm

    If you receive monetary gifts from abroad: From Relatives: They are completely exempt from tax. From Non-Relatives: If the total amount of such gifts during the financial year exceeds ₹50,000, the entire amount is taxable as income from other sources. Reference (Section 56(2)(x) of the Income Tax AcRead more

    If you receive monetary gifts from abroad:

    • From Relatives: They are completely exempt from tax.

    • From Non-Relatives: If the total amount of such gifts during the financial year exceeds ₹50,000, the entire amount is taxable as income from other sources.

    Reference (Section 56(2)(x) of the Income Tax Act, 1961):

    “Any sum of money or property (other than immovable property) received without consideration by an individual or Hindu Undivided Family (HUF) in excess of ₹50,000 in aggregate during a financial year shall be taxable as income from other sources, unless it is received from a relative.”

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 9 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

Who will be considered as relative for the purpose of claiming exemption of Income Tax on Gift?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:11 pm

    Under the provisions of Section 56(2)(vii) of the Income Tax Act, 1961, gifts received by an individual or a Hindu Undivided Family (HUF) are exempt from tax if they are received from a "relative." The Act defines "relative" for this purpose as follows: “For the purposes of this clause, ‘relative’ sRead more

    Under the provisions of Section 56(2)(vii) of the Income Tax Act, 1961, gifts received by an individual or a Hindu Undivided Family (HUF) are exempt from tax if they are received from a “relative.” The Act defines “relative” for this purpose as follows:

    “For the purposes of this clause, ‘relative’ shall mean—
    (a) the spouse of the individual;
    (b) the brother or sister of the individual;
    (c) the brother or sister of the spouse of the individual;
    (d) any lineal ascendant or descendant of the individual; and
    (e) the spouse of any such person.”

    Explanation in Simple Terms:

    • Spouse: Your husband or wife is always considered a relative.

    • Lineal Relatives:

      • Ascendants: Your parents, grandparents, etc.

      • Descendants: Your children, grandchildren, etc.

    • Siblings:

      • Your own brothers and sisters are included.

      • Additionally, the brothers and sisters of your spouse are also regarded as relatives.

    • Spouses of Relatives:

      • The spouse of your lineal ascendants or descendants, as well as the spouse of your siblings or the spouse’s siblings, are also treated as relatives.

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 14 Views
  • 0 Votes
Answer
Ramesh Sharma
Ramesh SharmaEnlightened
Asked: September 22, 2021In: Income Tax

is gift received from relatives exempt from tax.?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on April 2, 2025 at 5:18 pm

    Yes, under the Indian Income Tax Act, gifts received from specified relatives are exempt from tax, regardless of the amount. This exemption is outlined in Section 56(2)(x) of the Income Tax Act, 1961. The term 'relative' includes: Spouse of the individual​ Brother or sister of the individual​ BrotheRead more

    Yes, under the Indian Income Tax Act, gifts received from specified relatives are exempt from tax, regardless of the amount. This exemption is outlined in Section 56(2)(x) of the Income Tax Act, 1961.

    The term ‘relative’ includes:

    1. Spouse of the individual​

    2. Brother or sister of the individual​

    3. Brother or sister of the spouse of the individual​

    4. Brother or sister of either of the parents of the individual​

    5. Any lineal ascendant or descendant of the individual​

    6. Any lineal ascendant or descendant of the spouse of the individual​

    7. Spouse of the persons referred to in points 2 to 6

    See less
    • 0
    • Share
      Share
      • Share on Facebook
      • Share on Twitter
      • Share on LinkedIn
      • Share on WhatsApp
  • 1 1 Answer
  • 8 Views
  • 0 Votes
Answer
Load More Questions

Sidebar

Ask A Question

Stats

  • Questions 794
  • Answers 494
  • Posts 11
  • Users 155
  • Popular
  • Answers
  • Ankit

    Is interest paid on home loan included in the cost ...

    • 3 Answers
  • admin

    What are the different types of accounting?

    • 1 Answer
  • admin

    What income do I have to pay taxes on?

    • 2 Answers
  • CA Vishnu Ram
    CA Vishnu Ram added an answer A Will in India is governed by the Indian Succession… May 6, 2025 at 10:14 am
  • CA Vishnu Ram
    CA Vishnu Ram added an answer Under the Indian Succession Act, 1925, a testator (person making… May 6, 2025 at 10:12 am
  • CA Vishnu Ram
    CA Vishnu Ram added an answer ✅ 1. What is a Will? A Will is a… May 6, 2025 at 10:10 am

Top Members

CA Sanjiv Kumar

CA Sanjiv Kumar

  • 271 Questions
  • 3k Points
Enlightened
CA Vishnu Ram

CA Vishnu Ram

  • 189 Questions
  • 3k Points
Enlightened
CA Manish Kumar Gupta

CA Manish Kumar Gupta

  • 4 Questions
  • 986 Points
Enlightened

Trending Tags

interest paid on personal loan QRMP Scheme under GST RBI guidelines on current account

Explore

  • Home
  • Services
  • Blog
  • Income Tax
  • GST
  • Accountancy
  • Finance
  • Corporate Laws
  • Others
  • Users

Footer

  • Terms of Service
  • Privacy Policy
  • About Us
  • Contact Us

© 2021 Taxchopal. All Rights Reserved.