Mat Capital Gains

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Mat capital gains. Hence it means that the income from ltcg shall remain credited to p l account and will not be deducted from net profit. Held that exempt capital gains credited. Similarly expenses incurred to earn such income shall remain debited to p l. Company sold an old fixed asset having nominal value in books resulted in long term capital gain as wells as mat.

Thus as the mat levies a tax the provisions of the act to that extent are not beneficial and hence cannot apply. Long term capital gains reported on massachusetts schedule d is from installment sales occurring between january 1 1996 and december 31 2002 is the rate that was applicable when it was sold. The special bench of the tribunal in the case of rain commodities ltd. The issue of whether exempt capital gains credited to the profit and loss account can be excluded while computing book profits under the provisions of mat has been a subject matter of debate before the tribunal.

Summary in a recent ruling delhi income tax appellate tribunal itat in the case of growth avenue securities pvt. Qualifying small business stock effective for tax years beginning on or after january 1 2011. The finance act 2015 further added clause iid to explanation 1 to section 115jb of the act explanation 1 provides the manner of computation of book profit which is the basis for computing mat to exclude the amount of income from capital gains arising from transactions in securities other than short term capital gains on which securities. Obviously where the tax treaties provides for capital gains exemption and simultaneously applying mat under the act betrays the spirit of the dtaa.

Question is mat applicability on long term capital gains. Long term capital gains are taxed on lower rates maximum is 20 you can refer the capital gains rate for 2019 and long term capital gains rates 2020 in case of long term capital gains on sale of a home after using it as primary residence for at least 2 years out of 5 years you are eligible to claim exemption upto 2 50 000 if you are single. 3912 del 2005 on the issue of inclusion of capital gains in book profits while computing minimum alternate tax mat under the provisions of the indian tax law itl where such capital gains are not chargeable to tax under the normal provisions. January 15 2020 at 4 25 pm cancel reply leave a comment.

Taxpayer vs dcit ita no. 17 5 whether capital gains arising under section 50 is long term capital gains for section 54ec purposes 17 6 time limit of 6 months for investment in specified bonds under section 54ec 17 7 name in which bonds should be purchased.