Section 45: Taxable Capital Gains from Asset Transfers & Key Exceptions Explained for Different Taxation Years.

Section 45 of the Income Tax Act outlines the chargeability of capital gains, specifying that profits from the transfer of a capital asset are taxable in the year of transfer unless exempt under certain sections. Exceptions include taxation of gains from insurance claims on damaged assets in the year of claim receipt, maturity of certain insurance policies, conversion of assets to stock-in-trade, compulsory acquisition compensation, joint development agreements, and mutual fund repurchases. Each exception dictates specific circumstances under which capital gains are taxed in years different from the actual transfer year.

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