Taxmann Law Relating to Capital Gains By D.C. Agrawal, Sanjiv Dutt Edition April 2023

Taxmann Deduction of Tax at Source Vinod K Singhania

Taxmann Deduction of Tax at Source Vinod K Singhania

This book is a treatise on ‘Capital Gains’ under the Income-tax Act. It contains every aspect of the law on the subject matter, which one would wish to know, understand, and search for. This book is presented in a ‘question & answer’ format, where the answers are crafted with utmost care and precision. The answers also incorporate all aspects of the issue arising from the questions. The coverage of the book includes the following:

• 1,200+ Questions & Answers
• 680+ Topics
• 55 Chapters
• 3,000+ Case Laws

This book will be helpful for Departmental officers, litigants, and tax professionals to understand the all-important and recurring issues that arise in Capital Gains.

The Present Publication is the Latest 2023 Edition and has been amended by the Finance Act 2023. This book is authored by D.C. Agrawal and Sanjiv Dutt, with the following noteworthy features:

• [Lucid Explanation] of various provisions of the Income-tax Act relating to Capital Gains
• [3000+ Case Law based Analysis with ‘Relevant’ Factual Matrix] that has been considered in the judgement that is being referred
• [Amended & Updated] The newly substituted provisions as per the Finance Act 2023 have been incorporated and explained in a manner that both the experts & beginners can understand with ease
• [Analysis New Topics] such as:
• Capital Gains and Business Trusts
• Capital Gains in International Financial Services Centre (IFSC)
• Capital Gains under International Taxation
• Other Provisions Relating to Capital Gains

The structure of the book is as follows:

• Question and Answer Format
• Bare Provisions Relating to Capital Gains and the Amendments
• Analysis of the Provisions
• Chapter-end Summaries
• Check Points for Tax Planning

The contents of the book are as follows:

• Chapters 2 to 6 guide on the issues relating to the following:
• Exempted Capital Gains
• Capital Asset
• Long-Term and Short-Term Capital Assets/Gains
• Scope of Transfer
• Chapter 7 provides a comparison between Business Income and Capital Gains
• Chapters 8 to 13 provide deep insight into various aspects of Section 45, which includes the following:
• [Section 45(3)] – Entry of New Partner/Member in the Firm/AOP/BOI
• [Section 45(4)] – Distribution of Assets on Dissolution of the Firm
• [Section 45(4) and 9B] – Reconstitution of Firm/Specified Entity
• [Section 45(5)] – Joint Development Agreements
• Chapters 14 and 15 explain the intricacies involved in charging Capital Gains on the distribution of assets by the companies in liquidation and buyback of shares by the companies covered u/s 46 and 46A
• Chapters 16 and 17 explain how in some instances transaction will not be a transfer and when capital gains exempted earlier will be charged as covered u/s 47 and 47A
• Chapters 18 and 19 highlight the mode of computation of capital gains and indexation as provided u/s 48
• Chapters 20 and 21 cover issues relating to the determination of the cost of acquisition as contained in Section 49
• Chapters 22 to 27 provide special provisions for the determination of the cost of acquisition or full value of consideration in specific cases such as:
• Market Linked Debentures
• Slump Sale
• Transfer of Immovable Properties or unquoted shares, or in residuary cases as contained in Sections 50, 50A, 50AA, 50B, 50C, 50CA and 50D.
• Chapter 28 provides treatment of money received in advance during the transfer of Capital Assets as contained in Section 51
• Chapters 29 to 44 cover issues relating to exemption from Capital Gains arising on the transfer of long-term capital asset
• Chapter 45 covers issues relating to the cost of acquisition in certain cases, as provided in Section 55
• Chapter 46 covers issues arising from the Reference to Valuation Cell as contained in Section 55A
• Chapter 47 covers issues relating to set off and carry forward of capital loss
• Chapters 48 to 50 discuss issues relating to rates of Capital Gains, or charge of Capital Gains on non-resident entities and funds or Alternative Tax regimes for NRIs
• Chapters 51 to 54 cover the special cases relating to the charge of Capital Gains on Business Trust, in IFSC, under International Taxation and residuary provisions related to the charge of tax on transferees
• Chapter 55, being FAQs, provides valuable answers to the possible queries arising in the mind of taxpayers intending to dispose of their long-term capital asset and invest in residential house

About the Author

D.C. Agrawal

Mr Agrawal, an Advocate, has a vast experience in the field of taxation. He served in Income Tax Department as an IRS officer for about 30 years. After that, in 2005, he was elevated to Income Tax Appellate Tribunal, where he served as Accountant Member till his superannuation in July 2011.

In the Income Tax Department, he served in various capacities as Assessing Officer, Investigating Officer and Departmental Representative before Income Tax Appellate Tribunal and Income Tax Settlement Commission. He has been associated with high-profile cases as Investigating Officer in Delhi.

Besides being an IRS, he holds a master’s degree in science. He is a Law Graduate and a qualified Cost and Works Accountant. As an Accountant Member of the Income Tax Appellate Tribunal, he has authored several landmark Judgments published in leading Tax Journals. He has also written three books, all of which are published by Taxman:

• Basic Concepts of International Taxation
• Taxation of Cash Deposits & Deposits after Demonetisation
• Law Relating to Reassessment

He has also authored about 200 Articles on various direct tax topics, particularly analysing judgements rendered by the Hon’ble High Court and Income Tax Appellate Tribunal. These Articles have been published in leading journals such as Corporate Professional Today and published by Taxmann.

He is practising as an Advocate and Consultant and appearing before Income Tax Appellate Tribunal. He has represented several important matters involving issues relating to domestic taxes, Transfer Pricing, and International Taxation.

Sanjiv Dutt

Mr Dutt, an Advocate, is a former IRS officer of the 1987 Batch who has over three decades of varied experience working at various levels in the Income Tax Department. He served not only as tax administrator but also as Departmental Representative and first appellate authority adjudicating appeals from search and seizure cases and those involving international taxation and transfer pricing matters.

He also worked on deputation with the SEBI, Mumbai, for four years. During his tenure, he was entrusted with investigating cases involving violations of the SEBI Act, 1992 and various SEBI Regulations, such as price/market manipulation, insider trading and IPO scam (2005). Later, he was associated with implementing the Prohibition of Benami Property Transactions (PBPT) Act, 1988. He supervised the working of one of the Benami Prohibition Units in the Department, carrying out investigation and attachment of Benami properties.

At the time of his retirement from the Department in July 2021 as Chief Commissioner of Income Tax, he was associated with the initial implementation of the Faceless Appeals Scheme of the Department.

Besides being IRS, he holds a Master’s degree in English literature and is a Law Graduate. He is a member of the Delhi High Court Bar Association and a practising advocate and tax consultant.