Capital gain
This query is : Resolved
17 May 2012
how to determine the cost of acquisition in case of self generated capital assets.
example:
I paint a painting, its take 2 months, after 10 years i sold it for RS. 10 lac.
in this case what's the cost of acquisition.
please reply me
example:
I paint a painting, its take 2 months, after 10 years i sold it for RS. 10 lac.
in this case what's the cost of acquisition.
please reply me
18 May 2012
I am of the opinion that the cost of the painting is not ascertainable.
It was held by the Supreme Court in B.C. Srinivas Setty that the cost of acquisition of a self generated asset is indeterminate. Therefore, capital gain cannot be computed when a self generated asset is transferred. Hence, no capital gain will arise on the sale of self-generated asset. The amount received will be a capital receipt not chargeable to income-tax.
It was held by the Supreme Court in B.C. Srinivas Setty that the cost of acquisition of a self generated asset is indeterminate. Therefore, capital gain cannot be computed when a self generated asset is transferred. Hence, no capital gain will arise on the sale of self-generated asset. The amount received will be a capital receipt not chargeable to income-tax.
18 May 2012
if i purchases a painting then it is chargeable to tax
18 May 2012
if i purchases a painting then it is chargeable to tax
18 May 2012
Do you mean to say that you purchase a painting and then sell it?
In such a case the sale proceeds are taxable as capital gain.
In such a case the sale proceeds are taxable as capital gain.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
