Dear Ridhi,
a) Artificial Juridical Person - is assessed as AOP and rates will be determined as per {Sec 67A read with Sec 86}
b) Gifts from employer in excess of Rs. 5,000 - No clarity on this point...I mean u may come across different opinions but majority saysentire sum will be taxable once it exceeds Rs. 5,000 & not only in excess of Rs. 5,000.
c) Scientific Research (SR) Asset is sold without using them in Business then -
|
Cost |
100,000.00 |
Treatment where SR Asset is sold without being used for other purposes |
|
Deduction u/s 35 |
100,000.00 |
|
Sold for - Cases |
|
|
a) |
100,000.00 |
1,00,000 will be taxable as PGBP u/s 41(3) |
|
b) |
80,000.00 |
80,000 will be taxable as PGBP u/s 41(3) |
|
c) |
120,000.00 |
1,00,000 will be taxable as PGBP u/s 41(3) + 20,000 will be taxable as Capital Gain |
d)Where SR Asset is sold after being used for other purposes - It will be added to the Block of asset & Explanation to Sec 43(1) says -that asset will be added to the Block at follows -
Acual Cost Less Deduction u/s 35 ..
i:e at Nil Value.
Now when this asset is sold then same treatment will be followed as in respect of anyother asset..I mean no special treatment is there in this case unlike above.
e)The concept of Terminal Depriciation & Balancing Chagre is applicable only where SLM Method of Depricition is followed i:e in case of Power Generating UInits -
Thumb rule is - Any amount realized over and above actual cost of the asset will be treated under Capital Gains & till the actual cost the treatment will be done under PGBP.(same as SR Asset above)
|
|
|
PGBP |
Capital Gain |
|
Cost |
100,000.00 |
Terminal Depriciation |
Balancing charge |
|
|
Depreciation |
20,000.00 |
|
WDV |
80,000.00 |
|
Sold for - Cases |
|
Expense |
Income |
Income |
|
a) |
60,000.00 |
Rs. 20,000 |
Nil |
Nil |
|
b) |
80,000.00 |
Nil |
Nil |
Nil |
|
c) |
100,000.00 |
Nil |
Rs. 20,000 |
Nil |
|
d) |
120,000.00 |
Nil |
Rs. 20,000 |
20,000 |
CAclubindia
