X Ltd. an Indian Company, sells the following asstes outside a recognised stock exhange on may 19,2009
| sale consideration | Gov. securities | Pref. Shares (listed) | |
| Sale consideration | 80,000 | 5,92,000 | |
| Cost of acquistion | 70,000 | 1,00,000 | |
| Date of purchase | 19/4/2008 | 28/4/1984 |
Find out the amount of tax liability for the A.Y. 2010-11 on the following assumptions-
a. income of X ltd. from business rs. 5,56,000;
b. amount invested in NSC VIII issued on Marh 31,2010 rs. 1,00,000.
Plz reply fast.
plz reply any one
I m waiting eagerly
Dear Dheeraj,
| 1) | PGBP | 556,000.00 | |||
| 2) | Capital Gain | ||||
| Bonds | |||||
| Sale | 80,000.00 | ||||
| CoA | (70,000.00) | ||||
| Short Term | 10,000.00 | 10,000.00 | |||
| Shares | |||||
| Sale | 592,000.00 | ||||
| Coa | 100,000.00 | ||||
| Indexed | 632.00 | 125.00 | 505,600.00 | ||
| Long Term | 86,400.00 | ||||
| 3) | Gross Total Income | 652,400.00 | |||
| 4) | Tax - | Income | Rate | Tax | |
| PGBP & STCG | 566,000.00 | 30% | 169,800.00 | ||
| LTCG | 86,400.00 | 20% | 17,280.00 | 187,080.00 | |
| Add: Education Cess | 5,612.00 | ||||
| 192,692.00 | |||||
| Deduction u/s 80 C - Not avialable to Companies | |||||
Dear Dhirender Sir,
If the securities mentioned in the question are listed then Yes you are correct Capital Gains will be Long Term..
But Sir, the question dint specify this thing(the way it specified in case of Preference Shares)..Ya u can assume...
Business Income 5,56,000
Capital Gains
1. Govt Securities
Sale Consideration 80,000
Indexed Cost of Acquisition (70,000*632/582) 76,014 3,986
2. Preference Shares (listed)
Sale Consideration 5,92,000
Indexed Cost of Acquisition (1,00,000*632/125) 5,05,600 86,400
Gross Total Income 6,46,386
NO 80 C Deduction for Companies -
Total Income 6,46,386
Tax Liability
Tax at normal rates 556000 * 30% 1,66,800
Tax at special rates (LTCG) 90,386 * 20% 18,077
1,84,877
Add: EC & SHEC (3%) 5,546
Total Tax Liability 1,90,423
Note: Capital Gains will be exempt if they have gone through a recognised stock exchange and sufferred STT.
CAclubindia
