I PCC Tax Exam analysis and solution to practical questions

Page no : 4

zahid (student) (38 Points)
Replied 11 May 2011

depreciation for motor car is 50%.....

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zahid (student) (38 Points)
Replied 11 May 2011

LTCG from sale of listed securites is exempt from tax...... hence setting of does not arise....

anuj (sdsdsd) (62 Points)
Replied 11 May 2011

first of all interest on capital 2 a partner is incum frm pgbp...100% sure...
n ohh i thought u were tokin abt all d decductions...u mean 2 say dat in case of opq college...deduction will b 10 lakhs....m i ryt...d rest of d deductions r correct as per my thinkin coz d question clearly says dat k research n lmn college are approved while national lab is always taken as approved

anuj (sdsdsd) (62 Points)
Replied 11 May 2011

Originally posted by : zahid
	LTCG from sale of listed securites is exempt from tax...... hence setting of does not arise....

dis is d case only u/s 111a...n dis happens only in d first case....in d third case...d loss will b set off

zahid (student) (38 Points)
Replied 11 May 2011

u/s 111a is the case of STCG not LTGC brother.. go back tour book aand see thats the case.... STCG are subjet to 15% tax

rest abt scientific expenditure ur ryt

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CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28544 Points)
Replied 11 May 2011

Originally posted by : zahid
	answer to above capital gain is ryt but u have erred in COA... previous forfieted money is not taken into considerationj ie; Rs25000

This is a correction and will do it

zahid (student) (38 Points)
Replied 11 May 2011

Question no. 5(a) is wrong with respect to previous money forfieted ie; Rs 25000.. this amount is not deductible

CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28544 Points)
Replied 11 May 2011

Originally posted by : anuj
	sir..its a loophole ....d amt. forfeited(bayana) by d previous owner is not taxable becoz d bare act clearly says dat d amt. forfeited by d assessee is taken in2 consideration n here d preceding owner is not d assessee...its a tool of tax planning

Anuj,

I just want to confirm the same.25,000/- is a tax free income Rite. In Fact This 25,000/- also taken in to consideration for adjusting Cost of acquistion since this will have effect on Ultimate capital gain calculation... So as per the bear Act i am gone wrong but in the logic, i am correct. But not working

zahid (student) (38 Points)
Replied 11 May 2011

Q.7(a)(1) is correct

but in Q7(a)(2) (iii) reason is not correct.. Intrerest on FD are subject to tax and are not exempt under ohter sources... it is immaterial whether the amount is less than or in excess of Rs50000

anuj (sdsdsd) (62 Points)
Replied 11 May 2011

Originally posted by : zahid
	u/s 111a is the case of STCG not LTGC brother.. go back tour book aand see thats the case.... STCG are subjet to 15% tax rest abt scientific expenditure ur ryt

oh sorry ...but ltcg is exempt only in case of shares sold in d manner specified u/s 111a i.e. stock market, stt paid

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anuj (sdsdsd) (62 Points)
Replied 11 May 2011

Originally posted by : zahid
	u/s 111a is the case of STCG not LTGC brother.. go back tour book aand see thats the case.... STCG are subjet to 15% tax rest abt scientific expenditure ur ryt

oh sorry ...i quoted d section wrong....but ltcg on eq shares is xempt only if stt is paid n is dealt thru a recognised s.e

CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28544 Points)
Replied 11 May 2011

Originally posted by : anuj
	and in 1(a) sir y is cost of acquisition nil in d third case???i guess i got dat 1 wrong..so just askin

Anuj,

I have taken a wrong persumption that only 100 orginal shares and 200 bonus shares are sold. Will correct it.. I

CA.ViVeK M ACA (ACCOUNTS DEPARTMENT) (28544 Points)
Replied 11 May 2011

Originally posted by : zahid
	Advance amount is also taxable under all circumstances....

This is a correction

zahid (student) (38 Points)
Replied 11 May 2011

Originally posted by : anuj
	Originally posted by : zahid u/s 111a is the case of STCG not LTGC brother.. go back tour book aand see thats the case.... STCG are subjet to 15% tax rest abt scientific expenditure ur ryt oh sorry ...i quoted d section wrong....but ltcg on eq shares is xempt only if stt is paid n is dealt thru a recognised s.e