Section 45 — Capital Gains (Charging Section)
Section 45 Income Tax Act: the capital gains charging section explained for CA Inter — sub-sections 45(2), 45(3), 45(4), 45(5A) JDA with wor
Paper 3 — Taxation · Chapter
Capital Gains
Sections 45–112A of Income Tax Act — charge, transfer, computation, indexation, exemptions (Sec 54 family) and special tax rates. Heavily formula-driven; expect 10–14 marks.
51 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 47 — Transactions Not Regarded as Transfer
Section 47 Income Tax Act: 15+ transfers exempt from capital gains — HUF partition, gifts, amalgamation, demerger, firm-to-company conversio
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3
Section 48 — Mode of Computation
Section 48 Income Tax Act: learn how capital gains is computed in India — formula, indexation (CII), exceptions for equity & bonds, and NR r
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4
Section 49 — Cost with Reference to Certain Modes of Acquisition
Section 49 Income Tax Act: How to find cost of acquisition for gifted, inherited, or sweat equity assets — key CA Inter capital gains rule e
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5
Section 50 — Depreciable Assets (Sale)
Section 50 Income Tax Act: Capital gains on depreciable assets (block of assets) are always short-term. Learn the formula, both scenarios &
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6
Section 50C — Special Provision for Land/Building (Stamp Value)
Section 50C Income Tax: stamp duty value used as sale consideration for land/building capital gains — rules, 5% safe harbour, and exam tips
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7
Section 54 — Exemption for Residential House
Section 54 Income Tax: LTCG exemption on sale of residential house for individuals & HUF — timelines, CGAS rules, and two-house option expla
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8
Section 54B — Exemption for Agricultural Land
Section 54B Income Tax: Exemption on capital gains from sale of agricultural land if reinvested in new agri land within 2 years. Rules, CGAS
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9
Section 54EC — Investment in Specified Bonds
Section 54EC: Save LTCG tax on sale of land/building by investing up to ₹50L in NHAI/REC bonds within 6 months. Key rules, lock-in & exam ti
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10
Section 54F — Investment of Net Consideration in House
Section 54F exempts LTCG on sale of shares, gold or any non-house asset if proceeds are reinvested in one residential house — rules, formula
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11
Section 111A — Tax on Short-term Capital Gains (STT-paid)
Section 111A: flat 20% tax on STCG from listed equity shares & equity MFs where STT is paid. Key CA Inter topic; proviso protects low-income
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12
Section 112A — Tax on LTCG on Equity (₹1L exempt)
Section 112A: 10% tax on LTCG from listed equity shares & mutual funds above ₹1.25 lakh — rules, STT condition & exam tips for CA Inter 2026
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13
Advance Money Forfeited [Section 51 & Section 56(2)(ix)]
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14
Amalgamation [Section 2(1B)]
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15
Buyback of Shares [Section 46A]
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16
Calculation of Capital Gains [Section 48]
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17
Capital Asset Destroyed — Insurance Receipt [Section 45(1A)]
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18
Capital Gains on Buyback of Shares / Securities [Section 46A]
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19
Charging Section & Meaning of Capital Asset [Section 45 & 2(14)]
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20
Charging Section [45(1)] and Meaning of Transfer [2(47)]
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21
Compulsory Acquisition of Capital Asset [Section 45(5)]
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22
Computation of Capital Gains [Section 48]
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23
Conversion of Capital Asset into Stock-in-Trade [Section 45(2)]
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24
Cost of Acquisition — Normal & Special Cases
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25
Cost of Improvement
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26
Demerger [Section 2(19AA)]
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27
Determination of Period of Holding [Expl.1(i) to Sec 2(42A)]
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28
Determination of Period of Holding in special situations [Explanation 1(i) to Section 2(42A)]
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29
Distribution of Assets on Liquidation [Section 46]
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30
Equity Oriented Fund & Zero Coupon Bond — Meaning
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31
Exemption under Section 54EC - Investment in Specified Bonds
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32
Exemption under Section 54F - Investment in Residential House
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33
Exemptions from Capital Gains — Sections 54, 54B & 54D
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34
Full Value of Consideration — Land & Building [Section 50C]
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35
Liquidation of Company [Section 46]
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36
Market Linked Debentures, Specified Mutual Funds & Unlisted Bonds [Section 50AA]
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37
Meaning of Capital Asset [Section 2(14)] and exclusions
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38
Meaning of Transfer [Section 2(47)]
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39
Period of Holding — Normal & Special Cases [Section 2(42A)]
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40
Reverse Mortgage — Exemption [Sec 47(xvi) & 10(43)]
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41
Sale Consideration — Unlisted Shares [50CA] & Unascertainable Consideration [50D]
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42
Scope & Year of Chargeability [Section 45(1), 45(1A), 45(2), 45(5)]
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43
Slump Sale [Section 50B]
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44
Smart View — Structure of Capital Gains (Sec 45 to 54)
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45
Special Provision for Non-Residents - First Proviso to Section 48
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46
Tax Rates on Long-Term Capital Gains - Sections 112A and 112
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47
Tax Rates on Short-Term Capital Gains - Section 111A
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48
Transactions Not Regarded as Transfer [Section 47]
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49
Transfer Expenses & Securities Transaction Tax
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50
Types of Capital Assets and Period of Holding (STCA vs LTCA)
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51
Types of Capital Assets — Short Term vs Long Term
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