Taxability of Dividend Income As per the budget proposal, the recipient of dividend would be liable to pay income tax at applicable rates irrespective of the amount of dividend received. ... Further, taxpayers earning dividend income of more than Rs 10 lakh are required to pay tax at the rate of 10 per cent #TaxabilityofDividendIncome

INCOME FROM OTHER SOURCES Section 56- Incomes taxable only in Income from Other Sources are Dividend Income; Income earned from winning lotteries, crossword puzzles, races (including horse race), gambling or betting of any kind; Money or movable/immovable property received without consideration or inadequate consideration during previous year; #INCOMEFROMOTHERSOURCES

Section 54B EXEMPTION ON TRANSFER OF URBAN AGRICULTURAL LAND In order to avail exemption under section 54B of the Income Tax Act, 1961, the assessee is required to acquire new agricultural land within a period of two years from the date of transfer. Only on fulfilling the said condition, exemption under section 54B is available #Section54BEXEMPTIONONTRANSFERFURBaNAGRICULTURALLAND

EXEMPTION ON TRANSFER OF HOUSE PROPERTY USED FOR RESIDENCE Exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. To claim exemption under section 54, another house should be purchased within a period of one year before or two years after the date of transfer of house #EXEMPTIONONTRANSFEROFHOUSEPROPERTYUSEDFORRESIDENCE

Capital Gain- MISCELLANEOUS TOPICS The person buying the property must deduct taxes at the rate applicable to the NRI's income slab, if the property is a short term asset. If the property is a long term asset, 20% LTCG tax applies. ... Accordingly, short term capital losses can be set off against any income under capital gains be it short term or long term #CapitalGainMISCELLANEOUSTOPICS

Section 50CA (Introduced Vide the finance Act, 2017) FULL VALUE OF CONSIDERATION IN CASE OF UNQUOTED SHARES Finance Act, 2017 inserted new section 50CA in the Act w.e.f 1st April, 2018 to provide that where consideration for transfer of unquoted equity share of a company is less than the FMV of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration

Section 50B - CAPITAL GAINS IN CASE OF SLUMP SALE Section 50B of the Income-tax Act, 1961 provides the mechanism for computation of capital gains arising on slump sale. ... However, if the undertaking is 'owned and held' for not more than 36 months immediately before the date of transfer, gains shall be treated as short-term capital gains. #CAPITALGAINSINCASEOFSLUMPSALE

Section 47A - Withdrawal of Exemption (Holding-Subsidiary Transaction) 47A(1)(ii), if the parent company or its nominees ceases to hold the whole of the share capital of the subsidiary company before the expiry of eight years from the date of transfer, the exemption under section 47(iv) would be withdrawn retrospectively. #WithdrawalofExemptionHoldingSubsidiaryTransaction

SPECIAL PROVISIONS RELATING TO COMPANIES Section 46 The Companies Act, 2013 Section No. Section Name 44 Nature of shares or debentures 45 Numbering of shares 46 Certificate of shares 47 Voting rights #SPECIALPROVISIONSRELATINGTOCOMPANIES

Section 45(5A) TRANSFER OF CAPITAL ASSET UNDER JOINT DEVELOPMENT AGREEMENT 45 of Income Tax Act, 1961, a person is liable to capital gains in the year in which transfer takes place, irrespective of receipt of sale consideration. However, a new amendment, Sec. 45(5A) is introduced by Finance Act, 2017, with effect from 01/04/2018, providing great relief to individuals #joindevelopementagreement

Section 45(5) where by reason of the death of the person who made the transfer, or for any other reason, the enhanced compensation or consideration is received by any other person, the amount referred to in clause (b) shall be deemed to be the income, chargeable to tax under the head" Capital gains", of such other person.] #theincometaxact

TRANSFER OF CAPITAL ASSET BY WAY OF COMPULSORY ACQUSITION Compensation against such acquisition is provided to the assessee by the government. On occurrence of such transactions capital gain is to be computed as per the provisions of Income Tax Act. Section 45 of the act deals with situations which are not actual transfer but are deemed to be transfer of capital asset #TRANSFEROFCAPITALASSETBYWAYOFCOMPULSORYACQUSITION

COMPUTATION OF CAPITAL GAINS — SPECIAL CASES Section 45(1A) Section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year will be chargeable to income-tax under the head 'Capital Gains'. Such capital gains will be deemed to be the income of the previous year in which the transfer took place #COMPUTATIONOFCAPITALGAINS

Section 55 -, COST OF ACQUISITION (‘COA') Cost of Acquisition (COA) means any capital expense at the time of acquiring capital asset under transfer, i.e., to include the purchase price, expenses incurred up to acquiring date in the form of registration, storage etc. expenses incurred on completing transfer #COSTOFACQUISITION

Section 48 MODE OF COMPUTATION OF CAPITAL GAINS Full Value of Consideration (Section 48) in lieu of Capital Asset for Calculating Capital Gain. ... If it is received in kind, then fair market value of such assets is taken as full value of consideration. Full value of consideration does not mean market value of that asset which is transferred #Section48MODEOFCOMPUTATIONOFCAPITALGAINS