Thnx for correcting my mistake....
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 24 November 2009
Dear Juzer,
I have not contradicted rate of 10% in proviso. It has not been amended along with the main section and still exists as it is in the section. Hence you can definitely take it as 10%, but as i have already said its simply against the provision of main section, that's why I insisted on 15%. As regard to the incometax site, i didnt knew that the quote has been taken from website. I took it from the notes lying with me. Hence here i agree with your point that the view is of taxmann.
But while studying your reply and analysing it i found another relevant document which i would like to share here. It's a Post Budget Memorandum-2008 submitted by ICAI to government. In memorandum under Point 9 Clause 18 subpoint 'c' ICAI has also recommended to increase the rate in proviso to section 111A to 15%. Hope you would like to read it. Here is the link
https://www.icai.org/resource_file/218announ1383.pdf
I also slightly disagree with your view that income tax act has to be interpreted strictly according to literal construction. Although its more strictly followed as compared to other acts stated by you, but still in many cases courts have taken a view that interpretation beyond words is required if strictly following the literal words leads to injustice. Here I am giving a sample case
https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/%5B2000%5D244ITR0352(Cal).htm
I hope we will get a legal amendement in this regard next year. Till then i dont think practically any problem will arise if you take 10%. You can carry on with the same rate. Anyway the discussion was really fruitfull for me.
Lalit aggarwal
(.)
(371 Points)
Replied 26 November 2009
yes its 15%,
available if STT pay,
only on listed equity shares or Equity oriented mutual funds,
Sec 80 Benefit not available,
slab rate benefit available after using other income
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