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QUERY: A Ltd. has a brought forward losses of Rs. 1/- crore. During the F.Y. 2012-13, it has sold the depreciable asset being office premises which was purchased 5 years ago. The sale value is Rs. 5/- crore and the W.D.V. of said premise is Rs. 1/- crore.

A Ltd. wishes to adjust the brought forward business loss of Rs. 1/- crore against the deemed Capital Gain u/s. 50 relying on the Mumbai Tribunal decision in case of Digital electronics reported in 49 DTR 484.

The tax advisor of A Ltd. do not agree with the action of A Ltd. as regard the set off of business losses against the short term capital gain computed u/s. 50 in view of special bench decision in case of Nandi Steel reported in 134 ITD 73 (Bom.)
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EXPERT:
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Yes, the income tax is one tax. Section 14 of the Act, classifies the taxable income under different heads for the purpose of computation of net income of the assessee. Though, for the purpose of computation of the income,

QUERY: Whether shares received in ESOP from the employer would be taxable under section 17(2)(vi) of the Income-tax Act, 1961 as a perquisites or under section 56(2)(vii) of the Act as a gift or under both the sections?
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EXPERT:
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Generally the ESOP is received by the employee from the employer for the services rendered by him in the past and as a recognition of his contribution to the organization. Thus, it is necessary to have employer and employee relationship. Once that relationship exists then the employee is entitle to receive ESOP from present employer or past employer and therefore the same will be taxed under the head ‘Salaries’ and it would be included as perquisite under section 17(2)(vi) of the Act.

QUERY: Whether shares received in ESOP from the employer would be taxable under section 17(2)(vi) of the Income-tax Act, 1961 as a perquisites or under section 56(2)(vii) of the Act as a gift or under both the sections?
ANSWER: Click here to read the full answer of the expert
EXPERT:
SECTION(S): , ,
GENRE:
CATCH WORDS: , ,

Generally the ESOP is received by the employee from the employer for the services rendered by him in the past and as a recognition of his contribution to the organization. Thus, it is necessary to have employer and employee relationship. Once that relationship exists then the employee is entitle to receive ESOP from present employer or past employer and therefore the same will be taxed under the head ‘Salaries’ and it would be included as perquisite under section 17(2)(vi) of the Act.