Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: due date for vat payment :: cpt :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: TDS :: form 3cd :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES
 
 
News Headlines »
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?
 New income tax rules to curb unaccounted cash

I-T to scan cases of short-term capital gains
January, 06th 2007

The income-tax department has decided to take up all cases of short-term capital gains tax for scrutiny. 
 
According to market sources, it has been observed that most companies are filing claims under short-term capital gains, irrespective of the volume of transactions. 
 
For a company, if the volume of investments is high, the gains are taxed as business income. This is because in such cases, investment is considered as the main business activity. 
 
Otherwise, sale or purchase under investments is a long-term decision and is undertaken as a one-time activity. Therefore, the income attracts short-term capital gains tax and is not treated as business income. 
 
In many cases, even if the volume of transaction is more, assessees prefer a short-term capital gains tax of 10 per cent. The same profit , if shown as business income, will get taxed at 30 per cent. 
 
Capital gains are classified into long-term and short-term, based on the period for which the asset is held. Investment in immovable property is regarded as long-term if held for more than three years. 
 
However, investments in shares and other financial instruments need to be held for a minimum of one year to classify as long-term. 
 
While short-term capital gains is taxed like any other income, long-term capital gains takes into account the cost of inflation index, and gains are taxed at a flat rate of 20 per cent. 
 
Exemption from capital gains can also be availed by investing in special bonds under Section 54EC. These include three-year redeemable bonds issued by NABARD, National Highways Authority of India and Rural Electrification of Corporation Ltd.
--------------------------------------------------------------------------------
 
Most companies are filing claims under short-term capital gains, irrespective of the volume of transactions
In many cases, even if the volume of transaction is more, assessees prefer a short-term capital gains tax of 10 per cent
The same profit , if shown as business income, will get taxed at 30 per cent

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions