Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Urgent

Save Share

This query is : Resolved

manish sharma (Querist)
Follow

19 October 2011 Dear Sir
my client business is jcb (earth movers.he sell the one jcb machine on 13-06-2010 of 3350000/-opening wdv on 1-4-10 is 2350000/-therefore short term capital gain is arise of Rs.1000000/-This is a partnership firm.The tax liability on short term capital gain is 300000/-(30% tax bracket).Party is shoking listen this tax amount.

Detail of paymnet is as below

Rs.1000000/-by cheque receive on 23-02-2011.
Balance payment of Rs.2250000/-by installment per month of Rs.145000/-

Because firm taken this machine on loan renaming loan installment paid by buyer.loan is complete (last installment) on 10-08-2011.

i want to save this tax.I have not any solution of this problem because f.y end .

please help me.

CA Deepak S

CA Deepak S (Expert)
Follow

20 October 2011 You only need to pay tax if the block of asset in which the JCB was included is ceased to exist. If the value of the block is less than 33.50 lakh you will have to pay the tax on the difference amount.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now