CORPORATE TAX INDIA
(COMPUTATION OF TAX)
Q.1. Compute the tax payable on LTCG in the following cases for A.Y. 2012-13 assuming
(i) that the shares are listed in a recognised stock exchange in India;
(ii) total income does not exceed one crore rupees;
(iii) the securities transaction tax has not been paid:
(1) Y Ltd. is a shareholders of X Ltd. The company allotted it bonus shares of face value of Rs. 10,000 in 1982-83 and Rs. 15,000 in 1995-96. Y Ltd. sold all the bonus shares, in July, 2010 for Rs. 50,000.
(2) Y Ltd. purchased shares of Z Lt. as under :
(i) In 1981-82 cost Rs. 10,000;
(ii) In 1994-95 cost Rs. 15,540.
Y Ltd. sold the shares in Aug., 2010 for Rs. 75,000 and Rs. 74,000 respectively. Cost inflation index for 1981-82 100, 1994-95 259 and 2011-12 785.
Q.2. From the following information compute tax payable by X Ltd. for the A.Y. 2012-13 :
|1.||(i)||(i) Equity shares purchased on 10.6.2010||18,520|
|(ii) sold these shares in recognised stock exchange on 15.12.2011||25,400|
|(iii) Paid brokerage Rs. 300 and securities transaction tax Rs. 50|
|2.||(i)||Equity shares purchased on 8.5.2011||1,00,000|
|(ii)||Sold these shares in recognised stock exchange on 6.2.2012||1,50,000|
|(iii)||Paid brokerage Rs. 1,500 and securities transaction tax Rs. 300.|
|3.||(i)||Equity shares purchased on 9.5.1984||40,000|
|(ii)||Company purchased its own shares during previous year|
|from shareholders and paid to X Ltd. for its holdings||2,75,500|
Cost inflation index in 1984-85, 2010-11 and 2011-12 was 125, 711 and 785 respectively.
1. Securities transaction tax is not deductible in computing capital gains.
2. Total income does not exceed one crore rupees hence, surcharge is not payable.
Q.3. The Net Profit of X Company Ltd., as per Profit & Loss Account for the year ended on 31.3.2011 is Rs. 17,50,000. From the following information calculate the Book-Profit of the Company under section 115JB for the assessment year 2012-13.
The following amounts are found debited to profit and loss account:
|Provision for Unascertained Liability||1,00,000|
|Loss of Subsidiary Company||2,00,000|
|Provision for Income-Tax||2,50,000|
|The following amount is found credited to profit and loss account.|
|General Reserve (Withdrawal)||5,00,000|
Unabsorbed losses/allowances brought forward from past year as per books of accounts prepared under Schedule VI of Companies Act are ask follows:
|Unabsorbed Business Loss (excluding depreciation)||2,65,000|
Provision for loss of subsidiary company is added back in computing the ‘Book Profit’. But in the question, ‘the loss of subsidiary company’ is given. It is a deductible item, hence, not added to find out the book-profit.