Fire your tax related queries and i would get it solved!!!

[diosys]

Hi diosys
pls. clarify my two doubts:
1. i am a regular trader in stock market and income is business income.This year suppose i have a loss of 70000 rs . in trading. I have also a share which is a long term investment as i have invested in it in face value at rs. 10 . for rs. 1000 eight years ago and now it's market value is 160000 though the problem is i've not shown in my return before.my question is ifi sold it now for 160000 what will be my tax liabilty.in my sense
if it is taken as long term investment then no tax is payble as it is long term.secondly if it is taken as business income then also tax will be zero as net income is 160000- 60000=100000.
pls. inform me whether i'm right or wrong
regards
raja

It should be shown and claimed as Long Term Capital Gain exempt from tax.

 

[vikaspanwar]

LLP would be taxable at flat 30% whereas for indi it is as per slabs of income....In any case the tax outgo would be way less for an individual plus the applicable statutory compliances would also be substantially less...

Any ependiture i mean ANY expenditure done to earn the income is allowable to be set off unless it is contrary to the prevailing civic laws...
Your balance question are very vague....Please clarify

Thanks Diosys,
It is clear from here & other posts, Individual will be taxed as per slabs for any income (whether it is from Salary, Business or Trading etc).
But what about the deduction one can make other than to earn income.....(Like in salary..House rent, Medical bills (15000), LTA, House rent etc is subtracted from the Gross).
Can these be subtracted from the business income , as these are not to run business?
Your point...
unless it is contrary to the prevailing civic laws..

is not clear, may you explain this ..
Thanks a lot
Vikas

 

[raja1344]

It should be shown and claimed as Long Term Capital Gain exempt from tax.

hi diosys
thanks for your reply.i always depend on your guidence.but my point is if it dept. deny to accept it as long term as it has not been shown in my previous returns then my calculation is right or wrong
rgds.
raja

 

[diosys]

Thanks Diosys,
It is clear from here & other posts, Individual will be taxed as per slabs for any income (whether it is from Salary, Business or Trading etc).
But what about the deduction one can make other than to earn income.....(Like in salary..House rent, Medical bills (15000), LTA, House rent etc is subtracted from the Gross).
Can these be subtracted from the business income , as these are not to run business?
Your point...
unless it is contrary to the prevailing civic laws..

is not clear, may you explain this ..
Thanks a lot
Vikas

Yes, these deductions are not allowed since it is not related to business income...

Civil laws i mean getting ome income for which a bribe needs to be paid.

 

[diosys]

hi diosys
thanks for your reply.i always depend on your guidence.but my point is if it dept. deny to accept it as long term as it has not been shown in my previous returns then my calculation is right or wrong
rgds.
raja

There was no place to show in the erstwhile return any of your Capital gain holdings !!! so where would you show.....

It does not make any difference....only thing which needs to be proven is that you bought them through white income and it were present in your demat.

 

[raja1344]

There was no place to show in the erstwhile return any of your Capital gain holdings !!! so where would you show.....

It does not make any difference....only thing which needs to be proven is that you bought them through white income and it were present in your demat.

hi diosys
thanks,but one point i've forgot to mention that i have taken it in my demat from physical certificate one month ago,so what is the out come.have i to sell it one year later? or any other proof require to claim it as long term.
best rgds.
raja

 

[ASHUTOSH850]

Dear sir,
I am facing following Income Tax problem and would be thankful if i get solution --
Recently in Jan2010 i have sold my ancestral old house at a Taluka Place in Vidarbha,only in my single name ( As i was the only son to my parents ) at around Rs.12/-Lakhs. I am a retired person from State Govt . service.The house was constructed Ground floor in 1947, First floor in 1961,and small portion viz one room on second floor in 1969.I am senior citizen above 65 years of Age.So i want to know how should i consider the above income from house property for taxation purpose in Fin . Year 2009-2010 ?. I also would like to mention that i am prima facia getting following difficulies --
1. How to assess the price from 1981 onwards to evaluate net taxable income?
2. I have an option available to invest the same amount , which i desre to utilise , in the house property within TWO years from the date of sale in Jan 2010.
3. In view of Para 2 above how to indicate that income as non taxable income for a period of two years ?
Yours sincerely
ASHUTOSH850

 

[diosys]

hi diosys
thanks,but one point i've forgot to mention that i have taken it in my demat from physical certificate one month ago,so what is the out come.have i to sell it one year later? or any other proof require to claim it as long term.
best rgds.
raja

did you keep the photocopy of the scrip when held in non-demat form ??

In a nutshell you should have some proof with you to prove that you held the shares for the long term

 

[diosys]

Dear sir,
I am facing following Income Tax problem and would be thankful if i get solution --
Recently in Jan2010 i have sold my ancestral old house at a Taluka Place in Vidarbha,only in my single name ( As i was the only son to my parents ) at around Rs.12/-Lakhs. I am a retired person from State Govt . service.The house was constructed Ground floor in 1947, First floor in 1961,and small portion viz one room on second floor in 1969.I am senior citizen above 65 years of Age.So i want to know how should i consider the above income from house property for taxation purpose in Fin . Year 2009-2010 ?. I also would like to mention that i am prima facia getting following difficulies --
1. How to assess the price from 1981 onwards to evaluate net taxable income?
2. I have an option available to invest the same amount , which i desre to utilise , in the house property within TWO years from the date of sale in Jan 2010.
3. In view of Para 2 above how to indicate that income as non taxable income for a period of two years ?
Yours sincerely
ASHUTOSH850

Dear Ashutosh ji,

I am not your sir.... way younger to be your son so please do not use that... looks way tooooo formal..

Coming to your query. As you have correctly said that you would be required the valuation of 1981 in order to compute the capital gain the fair value as on 01/04/1981 or the original acquisation cost would need to be determined.

You would probably need to find a valuer who can value your house as on 01-04-1981 and on that basis you would need to move forward. This is if you are not able to find any documentation as to for how much it was bought by your ancestors.

Coming to your second question pertaining to exemption u/s 54. You would probably need to deposit the same in Capital Gains Accounta Scheme,1988 and can withdraw the same when the need arises.

Refer to this

http://www.lawzonline.com/bareacts/capital-gains-accounts-scheme/capital-gains-accounts-scheme.html

 

[vikaspanwar]

Yes, these deductions are not allowed since it is not related to business income...

Civil laws i mean getting ome income for which a bribe needs to be paid.

Thank You Diosys,
It's clear.
Vikas