Section 45 Charging Section of Capital Gains

As per Section 45

Any Profit or Gain

on transfer 

 of  Capital asset

is Taxable under Income from capital gains.

in year of Transfer

Except

When exempt under Section 54/54B/54D etc.

 

 Important Points

• Capital Gain is applicable on Certain Assets only called Capital Asset (and not all assets)
• Capital Gain is applicable on TRANSFER (Transfer not only includes Sale of Asset but also some other things which we will discuss later)
• It is taxable in year Asset Transferred (Sold) and not purchased
• Profit includes loss Also,so there can be loss on Sale of Captal Assets
• Exemption of Capital Gain are mentioned in Section 54/54B/54D etc

SUMMARY

Transfer+Capital Assets+ Not Exempt =Income/Loss from Capital Gain 

Lets study these points in detail one by one