Search Results For: 10


QUERY: A Co. has only agricultural income & income from sale of rural agricultural land (not capital assets). Can there be any liability under MAT?
ANSWER: Click here to read the full answer of the expert
EXPERT:
SECTION(S): ,
GENRE:
CATCH WORDS:

From the fact, it is apparent that querist is a company and therefore no Alternate Minimum Tax (AMT) would be applicable. For the companies Minimum Alternate Tax (MAT) would be applicable u/s. 115JB of the Act.
So while calculating “book profit” under Explanation 1 to section 115JB(1), the agricultural income falling u/s. 10(1) to be excluded as per Explanation (ii)

QUERY: What shall be the tax implications (LTCG), on sale of shares:
a) Purchased / acquired by gift / allotment / purchase before October 1, 2004 where no STT was paid (it was not through a stock exchange).
b) Acquired before October 1, 2004 by purchase through broker from recognized stock exchange. No STT was paid.
c) Shares acquired after October 1, 2004 through off market purchase or gift but no STT was paid.
d) Purchase / acquisition before October 1, 2004 through IPO’s / FPOs/ Bonus issue / Right issue by company are eligible for exemption u/s. 10(38) though no STT was paid as there was no share transaction). Sale of shares shall invite LTCG after availing indexation benefit.
ANSWER: Click here to read the full answer of the expert
EXPERT:
SECTION(S): ,
GENRE:
CATCH WORDS:

So in queries (a) and (b) purchased / acquired before October 1, 2004, the transaction would be chargeable as LTCG @ 20%. In case of query (c) purchased before October 1, 2004 off market where no STT was paid would also be chargeable as LTCG @ 20%. In case of query (d) from the facts, it is liable as LTCG @ 20%. However, as per explanatory memorandum, it has been indicated that purchase through IPO, FPO bonus or right issue by a listed company, acquisition by non-resident as per FDI policy etc., may be exempt, which means others are liable to tax.