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sec10(38)

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akshay (Querist)
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21 September 2010 LTCG on sale of equity shares ,exempt under sec10(38),shall be taken into account in computing the book profit and income tax payable under section 115JB

is it mean a person has to pay tax on such exempted capital gains in income tax payable

Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 September 2010 Yes MAT is payable on LTCG exempt u/s 10(38) only if tax on book profit is more tahn as per normal rates.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 September 2010 LTCG covered u/s 10(38) ,if credited in the p &l account, is not a permitted deduction from the profit disclosed in the p & l account for calculating book profit u/s 115JB of the Income tax Act,1961.

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