Hi everybody ,
There is a company which has earned long term capital gain during the year. They have disclosed it as LTCG . Do they have to show it as "gain on sale of assets" on the credit side of p&l a/c as per income tax act.
3 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(6567 Points)
Replied 10 August 2013
The long term capital gain included in the net profit prepared under the Companies Act is not deductible from the net profit for the purpose of computing book profit u/s115JB; merely because the long term capital gain is not liable to be taxed under the normal provision of the Act for the reason that the assessee has made investment in specified schemes as contemplated u/s 54EC, it is not correct to say that it is also to be reduced from the net profit for the purpose of computing deduction u/s 115JB when the Explanation to section 115JB does not provide for any deduction in terms of section 54EC meaning thereby that section 54EC has no application in the computation of book profit u/s 115JB.
Swami Ayyappa Nuli
(TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER)
(1372 Points)
Replied 11 August 2013
Not to be shown as Under the head income form pgbp but to be shown under the head capital gains
Rubul
(Student)
(151 Points)
Replied 13 April 2015
What is the rate of tax to be charged in case of ltcg of co. 30% or 20% with indexation???
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