GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If good will of a profession which is self generated is transferred, there will:
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Be a short-term capital gain
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Be capital gain
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Not be any capital gain
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None of these
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Explanation:
Detailed explanation-1: -In case self generated goodwill is transferred by professional firm then no capital gain. However in other case it is taxable as cost of self generated goodwill is specifically stated in law as NIL.
Detailed explanation-2: -When a property is received on inheritance or as a gift, it is not taxable for the receiver. When the inheritor or the receiver of this gift of property sells it, capital gains on the sale are taxable for the inheritor.
Detailed explanation-3: -SECTION 55 PROVIDES THAT –cost of acquisition of self generated asset, including goodwill of a business is NIL. The decision of Supreme Court is not applicable to those self generating assets as mentioned in Section 55.
There is 1 question to complete.