Issues, FAQs & Tax Planning Relating to Capital Gains

By D.C. Agrawal & Sanjiv Dutt | 3rd Edition, 2025 | Amended by the Finance Act 2025

This practical and in-depth guide offers a comprehensive overview of capital gains taxation in India, demystifying complex legal provisions through an accessible FAQ-style format. With 1,200+ questions across 680+ topics, the book addresses real-world scenarios commonly faced by taxpayers, legal professionals, and corporates. Fully updated by the Finance Act 2025, it integrates legal provisions, judicial precedents, departmental clarifications, and actionable tax planning strategies, making it a one-stop resource for anyone dealing with capital gains issues—across real estate, shares, mutual funds, restructuring, and more.

📘 Key Features

• ✅ Updated for Finance Act 2025
  Covers latest amendments impacting exemptions, valuation rules, and special capital gains provisions.

• ❓ FAQ-Based Format
  1,200 carefully crafted questions and answers clarify legal concepts, computation methods, and procedural requirements.

• ⚖️ Over 3,200 Judicial Citations
  Draws from key rulings of the Supreme Court, High Courts, and ITAT with contextual explanations and practical takeaways.

• 💡 Practical & Planning Insights
  Includes actionable tips, common pitfalls, checklists, and planning techniques—ideal for avoiding litigation and ensuring compliance.

• 🧾 Topic-Wise Organisation Across 55 Chapters
  Arranged from conceptual basics to advanced issues such as joint development agreements, slump sale, start-up investments, and buy-back taxation.

👥 Target Audience

• Tax Professionals & Legal Advisors – CAs, advocates, and consultants dealing with capital asset transactions

• Corporate Tax Teams & CFOs – Assists with M&A, real estate, equity restructuring, and complex tax events

• Students & Learners – Easy-to-understand format for law, commerce, and CA students

• Individual Taxpayers & Investors – Ideal for property sellers, equity investors, and those seeking to plan capital gains exemptions effectively

📚 Coverage Highlights

• Capital Asset Definition & Classification – Including agriculture land and business asset distinctions

• STCG vs. LTCG – Holding period criteria, reclassification, and disputes on business income vs. capital gains

• Computation of Capital Gains – Detailed explanation of Sections 48, 50C, 50D, 50B, 50AA, etc.

• Exemptions & Relief – Sections 54, 54F, 54EC, and others, including CGAS utilization and recent updates

• Special Situations –

  • Joint Development Agreements (Sec 45(5A))

  • Firm Reconstitution (Secs 45(3), 45(4), 9B)

  • Buy-back of Shares (Sec 46A)

  • IFSC Transactions

• Procedural & Litigation Aspects – Use of valuation officers (Sec 55A), loss set-off (Secs 70–74), and assessment strategies

• Miscellaneous Issues – Capital gains in family settlements, gifts, inheritance, partial sales, etc.

✍️ About the Authors

• D.C. Agrawal – Former IRS officer with vast experience in tax litigation, interpretation, and investigation

• Sanjiv Dutt – Advocate and ex-IRS officer with decades of advisory experience in direct tax practice, especially in complex capital gains matters