Sunday, April 15, 2012

Budget 2012- Capital Gain

Friends, 
          Long-term capital gains tax on sale of residential property to be exempt if the sale consideration is used for subscription in equity of a new start-up manufacturing SME company for purchase of new plant and machinery. 

          Reduction in STT rate from 0.125% to 0.1% in respect of delivery based purchase and sale of equity shares and units of equity oriented fund entered into through a recognized stock exchange in India. 

          Benefit of exemption under section 54B in respect of capital gains on transfer of agricultural land, which is reinvested in purchase of new agricultural land within two years, to be extended to HUFs also. 

         In cases where consideration for transfer of a capital asset is not attributable or determinable, then, for the purpose of computing taxable capital gains, fair market value of the asset is to be taken as the full value of consideration. 

          Assessing Officer enabled to make reference to he valuation Officer, if he is of the opinion that the value taken by the assessee as on 01.04.1981 is higher than the fair market value of the asset as on that date. 

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