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CAPITAL GAINS
ON TRANSFER OF SELF GENERATED ASSETS
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It refers to an
asset which does not cost any thing to the assessee in monetary terms relating
to its acquisition or creation.
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Self Generated Asset
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Treatment
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Goodwill
of a Business (excluding Profession);
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Right
to manufacture, produce, or process any article or thing or right to carry
on any business.
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Full
Value of Consideration will be taken on Actual basis.
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Cost
of Acquisition &/ or Improvement will be taken as Nil.
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Expenses
on transfer will be deductible on Actual basis.
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Tenancy
Rights;
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Route
Permits;
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Loom
Hours;
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Trademarks;
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Brand
name associated with the business.
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Full
Value of Consideration will be taken on Actual basis.
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Cost
of Acquisition will be taken as Nil.
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Cost
of Improvement will be taken on Actual basis.
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Expenses
on transfer will be deductible on Actual basis
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PLEASE NOTE:
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In
case of any other item purchased & later transferred the actual price and
improvement cost are taken as cost of acquisition & cost of improvement for
computing capital gains;
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Even
if the assets are acquired before April 1st’ 1981, the Fair market
value cannot be taken as the cost of acquisition.
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In
case of transfer of a self generated asset like goodwill of a Profession,
wherein the Cost of Acquisition cannot be determined then such transfer will
not b taxable under the act as per Supreme Court Ruling in the case of CIT vs. B.C Srinivasa Setty.
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