Chargeability - Section 45 - Income Tax - Ready Reckoner - Income Tax

Section 45(1): CHARGEABILITY Any profit and gains arising from transfer of a capital asset effected in the previous year shall be chargeable to income tax under the head capital gains in the previous year in which transfer took place unless such capital gain is exempt u/s 54 , 54B , 54D , 54E , 54EA , 54EB , 54F , 54G , and 54H . Exception to charging section Section 45(1) Exceptions to the rule that capital gain shall be chargeable to tax in the previous year in which transfer took place: Section 45(1A): Capital Gains on insurance claim on damage or destruction of capital assets is taxable in the year of receipt of claim from the insurance company although no asset has been actually transferred in such case. Section 45(1B): Any receipt of amount on maturity of high premium unit linked insurance policy to which exemption u/s 10(10D) not apply shall be chargeable as Capital Gain. [Amendment made by the Finance Act, 2021 ] Section 45(2): Capital Gains arising on conversion of capital asset into stock-in-trade shall be taxable in the year of in which stock-in-trade is sold although transfer takes place in the year of conversion. Section 45(5): Capital Gains on transfer by way of compulsory acquisition of an asset shall be chargeable to tax in the year in which compensation was first received by the assessee. Section 45(5A): Special provisions for computation of Capital Gain in case of joint development agreement. Section 45(6): The difference between the repurchase price of the units of mutual funds and the amount invested by the assessee, in such units issued for the purpose section 80CCB , shall be deemed to be the capital gains arising to the assessee in the previous year in which such repurchase takes place or plan is terminated and shall be taxed accordingly.