Capital gain related issues
This query is : Resolved
06 February 2012
Mrs. Sharmili Shah had acquired 10,000 (Ten Thousand Only) shares of Quick
Wealth Limited @ INR 100/- per share on 01.04.2006. During the year 2008-2009 she
started business of share trading. After consulting her adviser, she converted Shares of
Quick Wealth Limited in stock-in-trade as on 01.10.2008. The market rate as on
01.10.2008 was INR 160/- per share. During the financial year 2010-2011 she sells her
shares @ 200/- in the market. Total STT paid on this transaction is INR 10,000/-.
advice on taxability of capital gain while she
has paid STT on sale transaction.
Wealth Limited @ INR 100/- per share on 01.04.2006. During the year 2008-2009 she
started business of share trading. After consulting her adviser, she converted Shares of
Quick Wealth Limited in stock-in-trade as on 01.10.2008. The market rate as on
01.10.2008 was INR 160/- per share. During the financial year 2010-2011 she sells her
shares @ 200/- in the market. Total STT paid on this transaction is INR 10,000/-.
advice on taxability of capital gain while she
has paid STT on sale transaction.
06 February 2012
for the conversion she'll be liable to be taxed in CG, the taxability will be postponed till actual sale,
so in fy2010-11, she'll pay ltcg on
Sale Consideration 160
-ICOA
(100*582/519) (112.13)
LTCG ~48 per share
the second part of calculation will be under b&p
200-160=40 per share
so 40*10000=40000-10000stt
as u/s. 36(1)(xv)STT is allowed as biz expenditure
[(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head “Profits and gains of business or profession”.
Explanation.—For the purposes of this clause, the expressions “securities transaction tax” and “taxable securities transaction” shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004).
(xvi) 87 [***]]
so in fy2010-11, she'll pay ltcg on
Sale Consideration 160
-ICOA
(100*582/519) (112.13)
LTCG ~48 per share
the second part of calculation will be under b&p
200-160=40 per share
so 40*10000=40000-10000stt
as u/s. 36(1)(xv)STT is allowed as biz expenditure
[(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head “Profits and gains of business or profession”.
Explanation.—For the purposes of this clause, the expressions “securities transaction tax” and “taxable securities transaction” shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004).
(xvi) 87 [***]]
06 February 2012
for the conversion she'll be liable to be taxed in CG, the taxability will be postponed till actual sale,
so in fy2010-11, she'll pay ltcg on
Sale Consideration 160
-ICOA
(100*582/519) (112.13)
LTCG ~48 per share
the second part of calculation will be under b&p
200-160=40 per share
so 40*10000=40000-10000stt
as u/s. 36(1)(xv)STT is allowed as biz expenditure
[(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head “Profits and gains of business or profession”.
Explanation.—For the purposes of this clause, the expressions “securities transaction tax” and “taxable securities transaction” shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004).
(xvi) 87 [***]]
so in fy2010-11, she'll pay ltcg on
Sale Consideration 160
-ICOA
(100*582/519) (112.13)
LTCG ~48 per share
the second part of calculation will be under b&p
200-160=40 per share
so 40*10000=40000-10000stt
as u/s. 36(1)(xv)STT is allowed as biz expenditure
[(xv) an amount equal to the securities transaction tax paid by the assessee in respect of the taxable securities transactions entered into in the course of his business during the previous year, if the income arising from such taxable securities transactions is included in the income computed under the head “Profits and gains of business or profession”.
Explanation.—For the purposes of this clause, the expressions “securities transaction tax” and “taxable securities transaction” shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004).
(xvi) 87 [***]]
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Building and other construction workers welfare cess act 1996
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank accounts of Non resident
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
