Capital assets or stock in trade: Analysis of Section 9B of Income-tax Act, 1961 and Clause 8 of Income Tax Bill, 2025

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..... Income Tax Bill, 2025 1. Introduction Section 9B of the Income-tax Act, 1961, and Clause 8 of the Income Tax Bill, 2025, deal with the taxation of capital assets or stock in trade received by specified persons from specified entities during dissolution or reconstitution. Both provisions aim to bring clarity to the tax treatment of such transfers and establish a deemed transfer mechanism. 2. O .....

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..... ng to capital assets and stock-in-trade 2. Guidelines Implementation: * Clause 8 introduces a two-year limitation period for issuing guidelines (until April 1, 2026) * More detailed parliamentary oversight process in Clause 8 * Section 9B makes guidelines binding on tax authorities and assessees, while Clause 8 is silent on binding nature 3. Cross-References: * Section 9B refers to Secti .....

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..... 6. Conclusion While maintaining the core principles of Section 9B, Clause 8 introduces refinements in: * Administrative procedures * Parliamentary oversight * Timeline specifications * Terminology consistency These changes aim to enhance clarity and implementation effectiveness while maintaining the basic tax framework for asset transfers during dissolution or reconstitution.   F .....

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