CA Atihash Agarwal (CHARTERED ACCOUNTANT) (187 Points)
23 September 2012
MY COMPANY HAD PURCHASED UNITS OF TEMPLETON MUTUAL FUND ON 28/5/2010 AND SOLD THEM ON 28/11/2011.
SALE PRICE-27818743/-
PUR COST- 25000000/-
THE ONLY INCOME MY COMPANY HAS IS BY PROFIT ON THOSE MUTUAL FUND = 2820613/- AND EXPENSES = 22100/-.
I HAVE B/F LOSSES OF RS 230252/- AND CG LOSS OF 1522730/- IN THE PREVIOUS YEARS.
WHAT WOULD BE THE MAT TREATMENT AND THE TAX LIABILITY?
ALSO CAN THERE BE ANY TAX PLANNING FOR IT?
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 23 September 2012
For calculating liability under MAT, the LTCG that is exempt from tax is required to be considered while calculating the MAT liability and tax is determined accordingly.
However the b/f loss can be set-off against the income calculated under MAT as the income under MAT is deemed income for taxation purpose. However b/f CG loss can be set-off against only LTCG
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