Capital Gains Taxation

Updated: Jun 20, 2019

Capital gain tax is a part of income tax and it falls on Individuals, Hindu undivided family, Partnership firms, LLP and Limited Companies. Capital gains represent the difference between the sale price and acquisition price of any asset and this has to be obviously includes in the total income and in the income tax return. Every person who have capital gain can E- File the information through Income Tax return. E-Filing Income tax services will provide by Ourtaxpartner.com


Capital gains is a part of income and capital gains tax is not to be regarded as an additional or separate tax distinct from income tax. This is based upon the principle laid down by the courts that income tax is only one tax and it is wrong to assume that there are as many items of taxes as there are heads of income or source of income.

Get know the sections and details of Capital gain taxation in India.


  1. Section 45 - Capital gains - Basis of Charge

  2. Section 45 (1A) - Capital gain arises from insurance claim received for damage or destruction of a Capital Asset

  3. Section 45 (2) - Capital gain conversion of capital asset into stock in trade

  4. Section 45 (2A) - Transfer of securities by depository

  5. Section 45 (3) - Capital gain on transfer of a capital asset by a person to a partnership firm / AOP as capital Contribution

  6. Section - 45 (4) - Capital gain on transfer of capital asset by way of distribution on dissolution of a partnership firm / AOP

  7. Section 45 (5) - Capital gain on transfer by way of compulsory acquisition of an asset

  8. Section 45 (6) - Capital gain on repurchase of units of mutual funds under Equity Linked Savings Scheme

  9. Section 46 - Capital gain on distribution if assets by companies in liquidation

  10. Section 46 (1) - Whether capital gain arises to company or not

  11. Section 46 (2) - Whether capital gain arises to shareholders

  12. Section 46 A - Capital gains on purchase by company of its own shares or other specified securities

  13. Section 47 - Transactions not regarded as transfer

  14. Section 47 A - Withdrawal of exemption in certain cases

  15. Section 48 - Mode of computation of Capital gain

  16. Section 49 - Cost with reference to certain modes of acqusition

  17. Section 49 (1) - Cost to the previous year

  18. Section 49 (2) - Cost of shares of amalgamated companies

  19. Section 49 (2A) - Cost of acquisition in the case of shares acquired on conversion of debentures

  20. Section 49 (2AA) - Cost of acquisition of shares, etc under ESOP

  21. Section 49 (2AAA) - Cost of the partnership rights of a partner on conversion of a company into LLP

  22. Section 49 (2AB) - Cost of shares issued under ESOP if such shares have already been adjusted to FBT under section 115WC (1) (ba)

  23. Section 49 (2ABB) - Cost of acquisition of share or shares of a company acquired by the non -resident on redemption of Global Depository Receipts

  24. Section 49 (2AC) - Cost of acquisition of unit of a business trust acquired in consideration of transfer of asset referred to in section 47 (xvii)

  25. Section (2AD) - Cost of acquisition of the units of the consolidated scheme acquired in lieu of units held in a consolidation scheme

  26. Section 49 (2C) - Cost of acquisition of shares in the resulting company

  27. Section 49 (2D) - Cost of acquisition of the original shares of the demerged company

  28. Section 49 (2E) - Cost of acquisition of the shares of the resulting Co -operative bank and demerged Co-operative bank

  29. Section 49 (3) - Cost of acquisition when exemption is withdrawn under section 47 A

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