19 October 2011
Dear Sir my client business is jcb (earth movers.he sell the one jcb machine on 13-06-2010 of 3350000/-opening wdv on 1-4-10 is 2350000/-therefore short term capital gain is arise of Rs.1000000/-This is a partnership firm.The tax liability on short term capital gain is 300000/-(30% tax bracket).Party is shoking listen this tax amount.
Detail of paymnet is as below
Rs.1000000/-by cheque receive on 23-02-2011. Balance payment of Rs.2250000/-by installment per month of Rs.145000/-
Because firm taken this machine on loan renaming loan installment paid by buyer.loan is complete (last installment) on 10-08-2011.
i want to save this tax.I have not any solution of this problem because f.y end .
20 October 2011
You only need to pay tax if the block of asset in which the JCB was included is ceased to exist. If the value of the block is less than 33.50 lakh you will have to pay the tax on the difference amount.
CAclubindia
