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.
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