Income from Capital Gain

Profit or Gain arising on transfer of capital asset is charged to tax under the Capital Gains Head. Capital Gain/profit is taxable in the year in which property is transferred/sale.

Since there is no sale/transfer in case of Inherited property, so capital gain tax does not arises. The Income Tax Act has specifically exempted assets received as gifts by way of an inheritance or will.

Any kind of property held by an assessee, whether or not connected with business or profession of the assesse is capital asset like land, building, house property, vehicles, patents, trademarks, leasehold rights, machinery, jewellery etc. Also

However, the following items are excluded from the definition of capital asset:

1.any stock-in-trade, consumable stores or raw materials held for the purposes of business or profession

2. personal effects, that is, movable property (including wearing apparel and furniture) held for personal use by the taxpayer or any member of his family dependent on him, 

but excludes— 

(a) jewellery; 

(b)archaeological collections; 

(c) drawings; 

(d) paintings; 

(e) sculptures; or 

(f) any work of art.

3. Agricultural land in India located in a rural area.

4. 6.5% Gold Bonds,1977 or 7% Gold Bonds, 1980 or National Defence Gold Bonds, 1980 issued by the Central Government;

5. Special Bearer Bonds, 1991;

6. Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 or deposit certificates issued under the Gold Monetisation Scheme, 2015.

This gain or profit is charged to tax in the year in which the transfer of the capital asset takes place. Taxability of gains is depends on type of capital gain.

Short term capital gains are gain/profits which you earn when you sell off short term capital assets and long term capital gains are the profits which you earn when you sell of long term capital assets.

For FY 2019-20

#To be considered a long term capital asset

*plus cess and surcharge as applicable

Yes, you are required to show loss on  sale transaction in your Income tax return. To carry forward losses you need to file return on or before due date.

No, Long term capital Loss (LTCL) can be set off from only long term capital gain (LTCG).

Form 10E is required to file as per sec.89 of the Income Tax Act to claim relief of Income received in arrear. Taxfolios team will assist you in filing Form 10E.

Any past dues like arrears of salary, bonus etc received in current year may be taxed at higher rate, so to save you from any higher tax burden due to delay in receiving income, the tax law allow relief u/s 89(1).

For Individual Income tax return due date is 31 July of the assessment year. For FY 2019-20 due date of filing Income tax return is 30 November 2020. For audit assesse due date of filing Income tax return is 30 November of the assessment year.