Section 1038 of income tax act 1961

One is short term capital gain and other is long term capital gain. Complete list of sections of income tax act, 19612019 aubsp. Equity oriented mutual funds means where funds are invested in equity s. Section 8 of the incometax act, 1961 act deals with mechanism for disclosure of information in respect of assessees under the act. The finance act, 2017 fa 2017 brought an important amendment to section 1038 of the income. Section 153a shall apply where search under section 2 is initiated. Section 1 of the income tax act, 1961 an overall view. Any income derived from a capital asset movable or immovable is taxable under the head capital gains under income tax act 1961. Section 80c is a popular choice if you want an answer to the question. Sec 1038, cbdt provides host of exemptions taxguru. This article summarises the amendment brought in section 1038 of the income tax act, 1961, the exemptions provided under the section. Clarification in respect of option under section 115bac of. Providing information under section 8 of incometax act, 1961 clarification in respect of notification no.

The usual course adopted by the tax authorities is to tax the long term capital gain ltcg or the short term capital gain stcg arising upon the sale of these stocks at abnormally high prices, under section 68 of the income tax act, 1961 the act. Cbi books 51 entities for transferring rs 1,038 crore black money to hong kong in 2014. Income received or assumed to be received in india is taxable in the hands of residents, nonresidents, and residents but nonordinarily residents. Government issues clarification regarding section 115bac.

According to section 10 of the income tax act 1961, the salaried employees are entitled to enjoy the tax exemption. Section 9 of income tax act, 1961 income deemed to. Finance act, 2017 amended section 1038 of the incometax act, 1961 the act stating that long term capital gains from transfer of listed equity. Officer under section 1433 of the income tax act, 1961 in short the act dated 30. Section 115bac of income tax act, 1961 was inserted in the income tax act, 1961 by finance act, 2020. Section 1038 of the income tax act speaks about exemption on transfer of long term capital assets of equity shares, equity oriented mutual funds and unit of business trust. Exemption under section 1038 of income tax act, 1961 for long. Page 1 of 3 section 1 of the income tax act, 1961 an overall view by paras kochar, advocate powers us 1 section 1 is contained in chapter xiii c of the income tax act, 1961. The capital gains have been divided in two parts under income tax act 1961. Section 10 exemptions under section 10 of income tax act.

More clarity needed regarding availing concessional. Income tax officers can now reopen tax cases for up to 10. Under section 80c of the income tax act 1961, taxpayers can claim deduction benefit on payments. Exemption under section 1038 of income tax act, 1961 for long term capital gains ltcg from penny stock. All air prevention and control of pollution act, 1981 apprentices act, 1961 arbitration and conciliation act, 1996 banking cash transaction tax black money undisclosed foreign income and assets and imposition of tax act, 2015 central boards of revenue act, 1963 charitable and religious trusts act, 1920 charitable endowments act, 1890. The section comes into effect from the assessment year 202122. The central board of direct taxes cbdt issued a circular on th april 2020 to clarify options under section 115ac of the income tax act, 1961. The amendment has withdrawn the exemption granted under section 1038 of incometax act, 1961 ita and introduced concessional 10%.

The objective of section 10 of the income tax act is to reduce the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and so on. The finance act, 2018 has withdrawn the exemption under section 1038 of the income tax act, 1961 and has introduced a new section 112a in order to levy long term capital gain tax on the transfer of a long term capital asset being an equity share in a company or a unit of an equity oriented funds or unit of a business trust w. For understanding the overall concept of income tax law in india, one should have to know the title or contents topics covered under sections 1 to 298 of income tax act, 1961 as amended by the. Section 5 defines the taxability under various heads such as. Analysis of recent amendment in section 1038 taxguru. An analysis of section 68 of the income tax act, 1961 vis.