TMI BlogTaxation of Capital Gain Income of Business Trust & Unit HoldersX X X X Extracts X X X X X X X X Extracts X X X X ..... C) . The asset shall be deemed to be the cost of acquisition to him of the share refer to in that clause. Where the total income of an assessee includes any income chargeable under the head Capital gains arising from the transfer of short-term capital asset, being an equity share in a company or a unit of an equity oriented fund or unit of a business trust and- Particulars Tax payable by the assessee on the total income shall be the aggregate of- The transaction of sale of such equity share or unit is entered into on or after 14.10.2004 (a)The amount of income-tax calculated on such short-term capital gains at the rate of fifteen per cent; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shall not be exempt of 10(38) in hands of shareholders who were allotted units of business trust in exchange of shares in the SPV. Such long term capital gains are chargeable on the sale of units of business trust in hands of shareholders. Such indexation under second provision to section 48 is available. Short term capital gains on sale of units of business trust on sale of which STT is paid is taxable in hands of unitholders @ 15% as per provisions of section 111A. However, such short term gains on sale of units of business trust shall not be taxable under section 111A but shall be taxable at normal tax rates in hands of the shareholders who were allotted units of business trust in exchange of shares in SPV. C. Capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall be exempt u/s 47(xvii) , it means there will be no capital gain on any transfer of a capital asset being the share of SPV to business trust in exchange of unit allotted by that trust to the transferor. For the purpose of meaning of SPV shall be as mentioned above and for the purpose of cost of acquisition in the hands of shareholder of SPV u/s 49(2AC) . The asset shall be deemed to be the cost of acquisition to him of the share refer to in that clause. For the purpose of period of holding u/s 2(42A), For computing the period of holding: (hc) in the case of a capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) of section 47 , there shall be included the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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