Capital gains
E.—Capital gains
Capital gains.
45.10[(1)] Any profits or gains arising from the transfer of a capital asset effected in the previous year shall,.save as otherwise provided in sections 11[53, 54, 54B,12[* * *] 13[14[54D, 54E and 54F]]], be chargeable to income-tax under the head “Capital gains”, and shall be deemed to be the income of the previous year in which the transfer took place.
15[(2) Notwithstanding anything contained in sub-section (1), the profits or gains arising from the transfer by way of conversion by the owner of a capital asset into, or its treatment by him as stock-in-trade of a business carried on by him shall be chargeable to income-tax as his income of the previous year in which such stock-in-trade is sold or otherwise transferred by him and, for the purposes of section 48, the fair market value of the asset on the date of such conversion or treatment shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset.]
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10. Inserted by the Finance Act, 1964, w.e.f. 1-4-1964. “(1)” deemed to have been omitted with the omission of sub-sections (21 to (4) by the Finance Act, 1966, w.e.f. 1-4-1966 and deemed to have been inserted with the insertion of sub-section (2) ; set footnote 15 below.
11. “53, 54 and 54B” substituted for “53 and 54” by the Finance Act, 1970, w.e.f. 1-4-1970 ; “53, 54, 54B and 54C” substituted for “53, 54 and 54B” by the Finance Act, 1972, w.e.f. 1-4-1973 and “53, 54, 54B.54C and 54D” substituted for “53, 54, 54B and 54C” by the Finance Act, 1973, w.e.f. 1-4-1974.
12. “54C" omitted by the Finance Act, 1976, w.e.f. 1-4-1976.
13. Substituted for “and 54D" by the Finance (No. 2) Act, 1977, w.e.f. 1-4-1978.
14. Substituted for “54D and 54E” by the Finance Act, 1982, w.e.f. 1 -4-1983.
15. Inserted by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-4-1985. Original subsection (2) was inserted by the Finance Act, 1964, w.e.f. 1-4-1964 and later omitted by the Finance Act, 1966, w.e.f. 1-4-1966.
16. Sub-sections (3) and (4) omitted by the Finance Act, 1966, w.e.f. 1-4-1966. Original subsections were inserted by the Finance Act, 1964, w.e.f. 1-4-1964.
[AS AMENDED BY THE FINANCE ACT, 1986]