Amazines Free Article Archive
www.amazines.com - Saturday, January 20, 2018
Read about the most recent changes and happenings at Amazines.com
Log into your account or register as a new author. Start submitting your articles right now!
Search our database for articles.
Subscribe to receive articles emailed straight to your email account. You may choose multiple categories.
View our newest articles submitted by our authors.
View our most top rated articles rated by our visitors.
* Please note that this is NOT the ARTICLE manager
Add a new EZINE, or manage your EZINE submission.
Add fresh, free web content to your site such as newest articles, web tools, and quotes with a single piece of code!
Home What's New? Submit/Manage Articles Latest Posts Top Rated Article Search
Google
Subscriptions Manage Ezines
CATEGORIES
 Article Archive
 Advertising (133217)
 Advice (160301)
 Affiliate Programs (34721)
 Art and Culture (73434)
 Automotive (145324)
 Blogs (74875)
 Boating (9832)
 Books (17124)
 Buddhism (4120)
 Business (1325774)
 Business News (425905)
 Business Opportunities (366164)
 Camping (10941)
 Career (72639)
 Christianity (15804)
 Collecting (11634)
 Communication (114987)
 Computers (241821)
 Construction (38751)
 Consumer (49390)
 Cooking (17047)
 Copywriting (6550)
 Crafts (18188)
 Cuisine (7525)
 Current Affairs (20345)
 Dating (45734)
 EBooks (19670)
 E-Commerce (48170)
 Education (184627)
 Electronics (83371)
 Email (6387)
 Entertainment (159598)
 Environment (28866)
 Ezine (3038)
 Ezine Publishing (5441)
 Ezine Sites (1550)
 Family & Parenting (110846)
 Fashion & Cosmetics (196193)
 Female Entrepreneurs (11837)
 Feng Shui (130)
 Finance & Investment (310085)
 Fitness (105333)
 Food & Beverages (62691)
 Free Web Resources (7931)
 Gambling (30194)
 Gardening (25039)
 Government (10505)
 Health (628059)
 Hinduism (2156)
 Hobbies (43999)
 Home Business (91528)
 Home Improvement (250966)
 Home Repair (46059)
 Humor (4787)
 Import - Export (5422)
 Insurance (45051)
 Interior Design (29524)
 International Property (3485)
 Internet (190855)
 Internet Marketing (146206)
 Investment (22812)
 Islam (1169)
 Judaism (1356)
 Law (80123)
 Link Popularity (4592)
 Manufacturing (20751)
 Marketing (98640)
 MLM (14135)
 Motivation (18199)
 Music (26987)
 New to the Internet (9473)
 Non-Profit Organizations (4046)
 Online Shopping (129579)
 Organizing (7787)
 Party Ideas (11838)
 Pets (38055)
 Poetry (2234)
 Press Release (12643)
 Public Speaking (5617)
 Publishing (7512)
 Quotes (2405)
 Real Estate (126542)
 Recreation & Leisure (95112)
 Relationships (87384)
 Research (16125)
 Sales (80281)
 Science & Technology (110003)
 Search Engines (23432)
 Self Improvement (152992)
 Seniors (6216)
 Sexuality (35907)
 Small Business (49263)
 Software (82862)
 Spiritual (23397)
 Sports (116392)
 Tax (7655)
 Telecommuting (34061)
 Travel & Tourism (305858)
 UK Property Investment (3117)
 Video Games (13416)
 Web Traffic (11689)
 Website Design (56743)
 Website Promotion (36530)
 World News (1000+)
 Writing (35419)
Author Spotlight
ALICE KEN

I am a practicing lawyer in New York with more than 10 years of experience. I have found passion in...more
BRIAN WILSON

I am a qualified internet marketing professional and content writer with more than 10 years of exper...more
DAN ABELOW

Dan Abelow is an American inventor, author, speaker and technology consultant. His latest patent-pen...more
SARA DAWSON

Sara Dawson is the managing partner at The Science of Permanent Weight Loss. Her personal journey go...more
LEE MARK

Lee Mark is a gadget wizard, an active blogger, and an eminent speaker. Having 10 years of experienc...more


How to get exemption from paying Capital Gain Tax? by Ramalingam K






Article Author Biography
How to get exemption from paying Capital Gain Tax? by
Article Posted: 09/15/2017
Article Views: 132
Articles Written: 101
Word Count: 675
Article Votes: 0
AddThis Social Bookmark Button

How to get exemption from paying Capital Gain Tax?


 
Finance & Investment
However, our lawmakers are human, and they understand this general aversion of people to pay taxes. That may be one of the reason that while drafting tax laws they have also given opportunities to pay lower taxes with provisions for exemptions.

The Income Tax Act, 1961, covering the Capital Gain Tax is also not an exception to the rule.

What is Capital gain Tax?

Wikipedia has defined capital gains tax (CGT) “is a tax on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a cost amount that was lower than the amount realized on the sale. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property”.

The Income Tax Act, 1961, states that the incidence of tax on Capital Gains depends upon the length for which the capital asset transferred was held before the transfer.

Short term Capital Gains Vs Long Term Capital Gains

Ordinarily a capital asset held for 36 months or less is called a ‘short-term capital asset’ and the capital asset held for more than 36 months is called ‘long-term capital asset’.

However, shares of a Company, the units of Unit Trust of India or any specified Mutual Fund or any security listed in any recognised Stock Exchange are to be considered as short term capital assets if held for twelve months or less and long term capital assets if held for more than twelve months. Tax exemptions are available only in long term capital gains.

How we can avail these exemptions?

Section 54 of the I T Act, 1961, explains availing of the exemptions:

Section 54: Capital Gain TaxExemptions when sold residential house and then buying another residential house.

• A person or HUF sells a residential property, • which is a long term capital asset, i.e. it is owned for more than 3 years, • and the capital gains (difference between purchase and selling price of the asset) is invested in buying another residential property, ? either within one year before the sale or ? within two years after the sale or ? constructs a residential property within three years of the sale,

• and holds on to the residential property for three years, is entitled to the exemption under this section of the Income Tax. Section 54 B: Capital Gain Tax Exemptions when sold agricultural land and then buying another agricultural land • A person sells agricultural land • which has been owned and used by him or by his parents • for at least two years, • and the and the capital gains is invested in buying another agricultural land • within two years, • is entitled to the exemption under this section of the Income Tax.

Sec 54EC: Investment of capital gains in Long-term Capital Gain Bonds

This section provides that capital gain arising from the sale of a long-term capital asset shall not be charged to tax to the extent such gains are invested in ‘long-term specified asset’ within a period of six months after the date of such transfer.

‘Long-term specified bonds’ means any bond, redeemable after three years and issued on or after 1-4-2006 by NHAI and REC.

This exemption was available up to a maximum of Rs.50 lacs per financial year.

Sec 54 F: Capital gain tax exemption on sale of certain capital assets in case of investment in residential house • In the case of a person or a HUF, the capital gain arises from the sale of any long-term capital asset, not being a residential house, • and the tax payer has, within a period of one year before or two years after the date on which the transfer took place purchased, • or has within a period of three years after that date constructed, a residential house, will qualify for the exemption.

Hope the above explanation on the capital gain taxation has given you a clarity and a better understanding on the various capital gain tax exemptions and its modalities.

K. Ramalingam is the chief financial planner at holisticinvestment.in, a leading financial planning and wealth management company.

Related Articles - capital gain, tax,







Email this Article to a Friend!

Receive Articles like this one direct to your email box!
Subscribe for free today!

 Rate This Article  
Completely useless, should be removed from directory.
Minimal useful information.
Decent and informative.
Great article, very informative and helpful.
A 'Must Read'.

 

Do you Agree or Disagree? Have a Comment? POST IT!

 Reader Opinions 
Submit your comments and they will be posted here.
Make this comment or to the Author only:
Name:
Email:
*Your email will NOT be posted. This is for administrative purposes only.
Comments: *Your Comments WILL be posted to the AUTHOR ONLY if you select PRIVATE and to this PUBLIC PAGE if you select PUBLIC, so write accordingly.
 
Please enter the code in the image:



 Author Login 
LOGIN
Register for Author Account

 

Advertiser Login

 

ADVERTISE HERE NOW!
   Limited Time $60 Offer!
   90  Days-1.5 Million Views  

 

Great Paranormal Romance

World News


GENE MYERS

Author of four books and two screenplays; frequent magazine contributor. Latest releases: "Songs fr...more
MAN HEALTH

John Dugan is a respected professional author who is noted for his contributions to a variety of new...more
DESIREE MICHELS

At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
STEVE EVANS

My passion is to see people everywhere released from emotional pain and brokenness and restored to t...more
SUSAN FRIESEN

Susan Friesen, founder of the award-winning web development and digital marketing firm eVision Media...more
NAIMA ROCCA

Since Naima was a child, writing has been her passion. Influenced by her passion, she received both ...more
LINNAEA MALLETTE

When Linnaea Mallette was four years old, a high fever seared away a large portion of her hearing. A...more
MICHAEL BRESCIANI

Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more
NANETTE VICTORIA

Nanette Victoria Spiritual Coach and Intuitive Guide (over 27 years experience) Spiritual Ministe...more
CHRISTOPHER EVANS

Christopher is based in the U.K. and is the author and founder of Critical Eye. ...more

HomeLinksAbout UsContact UsTerms of UsePrivacy PolicyFAQResources
Copyright © 2018, All rights reserved.
Some pages may contain portions of text relating to certain topics obtained from wikipedia.org under the GNU FDL license