sec10(38)

This query is : Resolved

akshay (Querist)
Follow

21 September 2010 LTCG on sale of equity shares ,exempt under sec10(38),shall be taken into account in computing the book profit and income tax payable under section 115JB

is it mean a person has to pay tax on such exempted capital gains in income tax payable

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

21 September 2010 Yes MAT is payable on LTCG exempt u/s 10(38) only if tax on book profit is more tahn as per normal rates.

Message likes : 2 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

21 September 2010 LTCG covered u/s 10(38) ,if credited in the p &l account, is not a permitted deduction from the profit disclosed in the p & l account for calculating book profit u/s 115JB of the Income tax Act,1961.

Message likes : 2 times

Upgrade to CAclubindia Pro. Subscribe Now!