Capital gain

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CA YOGESH GARG GMG PLYWOODS

CA YOGESH GARG GMG PLYWOODS (Querist)
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03 September 2011 whether Revolver attracts capital gain provisions??????

CA-CWA RAVI

CA-CWA RAVI (Expert)
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03 September 2011 capital gain provisions gets attracted if it is a capital asset u/s 2(14).. so if it is for personal use then it will not attract otherwise it will be a capital asset and its transfer u/s 2(47) will attract capital gain tax.

Taranjit Singh

Taranjit Singh (Expert)
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03 September 2011 The term ''Capital Assets''means....

S 2(14): Capital asset means property of any kind held by an assessee whether or not connected with his business or profession. It however does not include the following:

1. Any stock-in-trade, consumable stores or raw materials held for the purpose of his business or profession;
2. Personal effects, i.e., movable property (including wearing apparel and furniture, excluding jewellery), held for personal use by the assessee or any member of his family dependent on him.
3. Agricultural land in India, not being land situated in the following:-
1. In any area which is comprised within the jurisdiction of a municipality (whether known as a municipality, municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and, which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the first day of the previous year; or
2. In any area within such distance, not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may, having regard to the extent of, and scope for, urbanization of that area and other relevant considerations, specify in this behalf by notification in the Official Gazette;
4. 6.5 per cent Gold Bonds, 1977, or 7 per cent Gold Bonds, 1980, or National, Defence Gold Bonds, 1980, issued by the Central Government;
5. Special Bearer Bonds, 1991, issued by the Central Government;
6. Gold Deposit Bonds issued under the Gold Deposit Scheme, 1999 notified by the Central Government.

Taranjit Singh

Taranjit Singh (Expert)
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03 September 2011 Revolver is not covered in the above definition. So exempt.

Taranjit Singh

Taranjit Singh (Expert)
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03 September 2011 There can be Short Term Capital Gains if you have Added the Revolver in Block for Depreciation purposes( Applicable only in case of Business or Profession).

CA YOGESH GARG GMG PLYWOODS

CA YOGESH GARG GMG PLYWOODS (Querist)
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05 September 2011 thanzzz a lot

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