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: due date for vat payment :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: VAT Audit :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: cpt :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment
 
 
News Headlines »
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions
  Mentioning of Minor Head Code for accounting of Refund

Query corner: Tax savings
February, 09th 2010

I work for an unlisted company and have held its shares for three years. This company is a subsidiary of a listed company. The listed company has acquired my shares and issued its shares as preferential allotment. The value is far higher than the acquisition cost. Can I take benefit of section 54 EC?
Sumit Sampath

The transaction would be considered as a transfer under the tax law and would trigger capital gains. As the shares were held for more than a year, the gain would be considered as a long-term capital gain and would be taxed either at 10.30% without indexation or 20.60% with indexation, at your option. Yes, you would be eligible to avail of deduction under section 54EC on such capital gains.

I have earned short-term capital gain of Rs 2 lakh. I have purchased NSC worth Rs 1 lakh during December 2009. Do I need to pay any tax on this?
Tulshi Roy

Please note that you would not be able to claim deduction under section 80C for investment in NSC as such deduction is not available on capital gains. You will have to pay tax on your short-term capital gains in excess of your applicable basic exemption limit.

I have taken a gift of Rs 35 lakh from my NRI cousin. Is there any tax liability on me?
Arun Kumar

If your cousin falls within the definition of a relative under section 56 of the Income Tax Act, 1961, you dont have to pay any tax. Otherwise, the entire amount would be considered as your taxable income.

I was allotted a flat in July 1996. However, some members and the High Court stayed all the allotments. Subsequently, I got possession of the same flat, which I sold the next month. Which date would be applicable for computing capital gains tax?
Mutatkar

As the Honourable High Court confirmed the original allotments, the period of holding and indexation should be considered from July 1996.

Is any income tax payable on surrendering a pension policy and endowment policy after 5 years?
Sudhir Goyal

Pension policy is not a life insurance policy. Hence, you cannot claim exemption provided U/S 10(10D) of the I-T Act, 1961. The entire amount withdrawn would be taxable as per U/S 80CCC (2) of the I-T Act. For an endowment policy, the sum is exempted under section 10(10D) of the I-T Act.

However, an important condition is the premium paid to-wards such a policy during the period should not be more than 20% of actual capital sum assured under the policy.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

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