Queries relating to Section 88E and 115JB

This query is : Resolved

CA CS Akashdeep Singh (Querist)
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06 December 2008 Sir

One of my client(X Ltd.) has a business income from taxable security transaction. Current issue is relating to Sec 115 JB and Sec 88E.

Facts

In Sec 115JB, if "tax on total income" is less than 10% of book profit, then 10% of book profit shall be treated as tax which he has to pay.

In Sec 88E, if any individual has a business income from taxable security transaction, STT paid by him is allowable as deduction from tax on total income

Issue

In Sec 115JB, which "tax on income" is taken to compare with 10% of book profit?

Solution: tax after or before deduction u/s 88E

Regards

Akashdeep Singh

Reply to

Mr. Tilak Raj Sharma
Sec 88E using the word "assesse", which means it includes company

CA.B.Chackrapani Warrier
Yes i rectify my question after informing by you because i am not registered as expert, so it is not possible for me to ask corrected question in same message. If you know the answer, then understand Me

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 December 2008 115JB is for companies. Your client is Mr X. Therefore no need for an answer since 115JB is not applicable to individuals.

Viewing my answer the question has been corrected subsequently and hence my answer has no relavnce to the question now appearing above.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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06 December 2008 As per my understing of your queries, You are combining both the things. One side you are saying that your client is X LTD. and on the other hand you are talking about exemption under section 88E.

Section 115JB is not applicable to Individuals and Exemption under section 88E is not allowed for Companies.

If you client is an Individual then there is no question of 115JB. And if your client is a Company then 88E is not applicable and STT is allowed as normal business expense and will be considered for calculation of book profit.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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