{"id":3509,"date":"2018-02-28T16:27:03","date_gmt":"2018-02-28T10:57:03","guid":{"rendered":"https:\/\/www.hostbooks.com\/in\/?p=3509"},"modified":"2023-08-08T14:44:58","modified_gmt":"2023-08-08T09:14:58","slug":"section-59-profits-chargeable-tax","status":"publish","type":"post","link":"https:\/\/www.hostbooks.com\/in\/hb\/income-tax-act-1961\/section-59-profits-chargeable-tax\/","title":{"rendered":"Section 59 of Income Tax: Profits Chargeable to Tax"},"content":{"rendered":"<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hostbooks.com\/in\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-1024x440.png\" alt=\"section 59 of Income tax\" width=\"1024\" height=\"440\" class=\"aligncenter size-large wp-image-16878\" srcset=\"https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-1024x440.png 1024w, https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-300x129.png 300w, https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-768x330.png 768w, https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-260x112.png 260w, https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-50x22.png 50w, https:\/\/www.hostbooks.com\/in\/hb\/wp-content\/uploads\/2018\/02\/section-59-of-Income-tax-150x65.png 150w\" sizes=\"(max-width:767px) 700px, (max-width:1024px) 100vw, 1024px\" \/><\/p>\n<p>Section 59 of income Tax Act 1961 is applicable while computing Income under head Proft and Gains of Business or profession specifying that when certain assets are sold, discarded, demolished, or destroyed and are subject to taxation under Income from other sources.<\/p>\n<p><b>Update<\/b><\/p>\n<ul>\n<li>The Definition of \u201cSold\u201d under <a href=\"https:\/\/incometaxindia.gov.in\/Acts\/Finance%20Acts\/1998\/102120000000009269.htm\">section 32<\/a> has been amended on 1st April 1999. It now reads under Section 32 (9) (d) (iii) (2) as &#8211; &#8220;sold&#8221; includes a transfer by way of exchange or a compulsory acquisition under any law for the time being in force but does not include a transfer, in a scheme of amalgamation, of any asset by the amalgamating company to the amalgamated company where the amalgamated company is an Indian company.<\/li>\n<\/ul>\n<h2>Section 59 of Income tax Act 1961 (Bare Act)<\/h2>\n<p>(1) The provisions of sub-section (1) of <a href=\"https:\/\/www.hostbooks.com\/in\/income-tax-act-1961\/chapter-iv-computation-of-total-income\/section-41-profits-chargeable-tax\/\">section 41<\/a> shall apply, so far as may be, in computing the income of an assessee under <a href=\"https:\/\/www.hostbooks.com\/in\/income-tax-act-1961\/section-56-income-sources\/\">section 56<\/a>, as they apply in computing the income of an Assessee under the head \u201cProfits and gains of business or profession\u201d.<\/p>\n<p>(2) When any buildings, machinery, plant or furniture to which clauses (ii) and (iii) of sub-section (2) of\u202fsection 56\u202fapply are sold, discarded, demolished or destroyed, the provisions of sub-section (2) of\u202fsection 41\u202fshall apply, so far as may be, in computing the income of an assessee under\u202fsection 56\u202fas they apply in computing the Income of an assessee under the head &#8220;Profits and gains of business or profession&#8221;.<\/p>\n<p><b>Explanation:<\/b> For the purpose of this section, the expression &#8220;sold&#8221; shall have the same meaning as in sub-section (1) of\u202fsection 32.<\/p>\n<h2>Synopsis: Section 59<\/h2>\n<table>\n<tr>\n<td>Act<\/td>\n<td>Income Tax Act 1961<\/td>\n<\/tr>\n<tr>\n<td>Section<\/td>\n<td>59<\/td>\n<\/tr>\n<tr>\n<td>Applicability<\/td>\n<td>Profits and loss for sold, discarded, demolished, or destroyed assets<\/td>\n<\/tr>\n<tr>\n<td>Related Sections<\/td>\n<td>Section 41, Section 56, Section 32<\/td>\n<\/tr>\n<\/table>\n<p><b>FAQs<\/b><\/p>\n<p>Which profits are chargeable to tax under section 59?<\/p>\n<p>Profits and gains when certain assets are sold, discarded, demolished, or destroyed and are subject to taxation under Income from other sources as per section 59 of Income Tax Act 1961.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 59 of income Tax Act 1961 is applicable while computing Income under head Proft<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":68,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[801,446],"tags":[],"yst_prominent_words":[1948,1432,993,1957,6598,994,452,6605],"_links":{"self":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/3509"}],"collection":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/comments?post=3509"}],"version-history":[{"count":9,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/3509\/revisions"}],"predecessor-version":[{"id":16880,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/posts\/3509\/revisions\/16880"}],"wp:attachment":[{"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/media?parent=3509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/categories?post=3509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/tags?post=3509"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.hostbooks.com\/in\/hb\/wp-json\/wp\/v2\/yst_prominent_words?post=3509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}