Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2014 (10) TMI 981

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... al gain is taxed at lower rate under section 111A, but at the same time, no security transaction tax credit is allowed against the same. The tax rate of business income is governed by altogether different provisions of the Act which could not be imported or read into section 88E. The phrase “amount calculated by applying the average rate of income tax” as used in sub– section (2) has to be reckoned as average rate of income tax on business income only. No merit in the ground raised by the Department as the directions given by the learned Commissioner (Appeals) is in accordance with the provisions of the law. - Decided against revenue - ITA no. 707/Mum/2011 - - - Dated:- 21-10-2014 - SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI AMIT SHU .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Income from business 75,06,488 STCG 32,99,567 Total Income 1,08,06,015 Tax on total income On STCG 3,29,957 On Income from other than STCG 22,51,934 25,81,891 Average rate of tax (25,81,891*100/1,08,06,020) 23.89% Tax Rebate u/s 88E STT paid 8,42,413 Income from securities .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 4. The learned Departmental Representative submitted that, if short term capital gain is to be excluded for the purpose of average rate of tax, then the tax rate would always be the rate applicable to the business profit only, i.e., maximum marginal rate of taxation. He thus submitted that the short term capital gain cannot be excluded for the purpose of calculation of average rate of tax as given in section 88E. 5. Before us, the learned counsel submitted that the security transaction tax is a method of tax collection at the point of transaction. The purpose of providing rebate under section 88E is to give credit of such taxes which has already been paid on the income declared under the head business income. Hence, if .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... transactions entered into in the course of his business during that previous year : Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes along with the return of income, evidence of payment of securities transaction tax in the prescribed form : Provided further that the amount of deduction under this sub-section shall not exceed the amount of income-tax on such income computed in the manner provided in sub- section (2). (2) For the purposes of sub-section (1), the amount of income-tax on the income arising from the taxable securities transactions, referred to in that sub-section, shall be equal to the amount calculated by applying the average rate of income-tax on such income. (3) No .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates