Computation of Income from Capital Gains

Computation of Income from CAPITAL GAINS As Amended by Finance Act, 2023

Authored by Ram Dutt Sharma, this 6th Edition (2023) offers a comprehensive and practical exposition on the computation, taxation, and legal interpretation of Capital Gains under the Income Tax Law. Updated as per the Finance Act, 2023, the book serves as an indispensable guide for tax professionals, corporate accountants, legal practitioners, and students of taxation.

The work meticulously explains the statutory provisions governing capital gains, covering both movable and immovable assets, securities, business assets, and other categories of capital assets. It integrates legislative analysis with procedural guidance, CBDT circulars, and landmark judicial rulings to ensure accuracy and practical applicability.

The content spans:

• Concept and scope of “Capital Asset” and “Transfer” under the Income Tax Act

• Computation mechanism for short-term and long-term capital gains

• Determination of cost of acquisition and cost of improvement

• Indexation provisions and special cases of computation

• Taxability on transfer of immovable property, shares, mutual funds, and other securities

• Capital gains arising from business reorganisations, amalgamations, and compulsory acquisitions

• Exemptions under Sections 54, 54B, 54EC, 54F, 54GB, and related provisions

• Set-off and carry forward of capital losses

• Tax deduction at source on certain transfers

• Special provisions for non-residents, including NRI investments and real estate transactions

• Recent judicial interpretations shaping capital gains taxation

• Practical illustrations and computation examples for better clarity

This edition is particularly suitable for:

• Chartered accountants and tax advisors involved in capital gains computation and planning

• Advocates handling capital gains litigation and advisory work

• Corporate finance professionals managing asset restructuring and compliance

• Students preparing for CA, CS, CMA, and other professional exams with a focus on direct taxation

By blending statutory precision with practical insights, this edition serves as a reliable reference for mastering the complexities of capital gains taxation under the Indian Income Tax Law.