Section 54 GB :- Capital Gain on trfr of Residential property not to be charged in certain cases

Section 54 GB was introduced by the financial act 2012. It applies to an Individual and HUF which includes resident as well as Non- resident. 

1. Only long term capital Gain is considered. As this section applies to Resident as well as Non-Resident, hence the capital asset include the property in India as well as outside India.

    

2. For claiming the deduction, the assesee must  subscribe the Equity shares of an eligible company before due date of furnishing of return e.g. 31 July or 30 Sep as the case may be.  

    

3. And such eligible company must utilise the subscribed equity shares amount for purchasing of new asset within a year from subscription. for example if assessee has subscribed shares on 29May2013, then the company must utilise this amount before 29May 2014.

   
   

4. If Net consideration is less than cost of new asset then whole amount of LTCG would be exempt otherwise the proportional deduction will be allowed

           Long term capital gain * (Cost of new asset/ Net consideration )  would be exempt. 

 

   5. equity shares and New asset would be lock in period of 5 years. 

 

   6. The proportion of capital gain which was not utilised would be taxable.  

 

Eligible company :- 

1. The company which was incorporated in the previous year in which the capital gain arises.  suppose if capital gain arises on 30 Apr 2013. then previous year would be 1-4-2013 to 31-3-2014, means any company which is established in this above time period would be eligible for deduction.

2. The company should be engaged in the manufacture of an article or a thing. 

3. The assessee must have more than 50%  of share capital or voting rights after subscription as the case may be. 

4.The company should come under the purview of Micro, small and Medium Enterprise Act 2006.

Be Passionate

Whenever we think about the word “Passion”, we start to imagine a person who has love and burning desire to achieve his goals, aspiration. It’s something that’s more than words. There are many persons including me have asked ourselves “Why are we not passionate towards our goal”? 

There may be many persons who had tried out “The secret” formula, the power of visualization and imagination and all efforts but still everything turned out to be a case of sour grapes. 

Let’s just do a little exercise...

“Think about any moment when you have thought and said it and felt the same that I wanna be CA”

Can you recall that moment?

Bang on! You hit the bull’s eye.  

 

Aham... wait!  This picture is not anymore clear in my eyes.  It’s not my cup of tea now.  I won’t say you to count all the benefits of achieving your aim. Because you may say I wouldn’t do that for all the tea in china.

So the actual point is what makes you passion keep going? Why can’t we just be consistent towards our passion? 

 

There are 3 factors which leaves a deep impact on our passion:-

1.       Effort

2.       Believe

3.       Success 

In short if any of the factors is missing in the coordination then surely you will lose your track. Let me illustrate this with a simple instance

Suppose you complete a big chapter after spending 5 hours on it. In between you missed your favorite show/ match or whatever.  Your mind would ultimately calculate the cost and profit balance in subconscious mind.  Afterwards, you will evaluate your performance from the ranking worse to excellent. In case if your rating is excellent, believe will boost up. Otherwise your shaken believe will ultimately affect your dedication toward success.

It’s getting little complicated to understand. Let’s make it easier

You are playing a game say skittles or temple run or Rune master. You play first game. You lose but you know you can do it better by having second bite of cherry. Now this time your performance rose. It’ll ultimately create your interest. The more and more success you achieve, the more you wanna spent hours on it. And ultimately you even forget your lunch while playing the game.  But let’s say you didn’t succeed even on having second bite of cherry. After several failure attempts you would even give up on the game rather than going bananas for the same. And with passing of time, you may even lose your interest up to such an extent that you can’t even clear the easiest level whereas you were challenging yourself on the other side of the road. 

The same case happens with studies as well but we don’t realize it. Rather than focusing on circumstances and other persons/ things and associate our performance with these factors. Let’s just introspect a little.

 At the end, nothing is more enjoyable that getting back your lost passion. Because passion is not just a feeling, it’s a fuel which says your capabilities and you are beyond the circumstances.