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| Capital gains, sale of equity shares ? | |
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| Excerpt of query: | The founders of a Start-up company sold 51% of their equity stake in a company to a strategic buyer in FY 2023-24. The total consideration for transfer of shares was agreed at Rs. 25 crores As per the terms of the deal, the founders are required to stay with the company for next 5 years after which their balance stake would be purchased. The founders are eligible for an additional consideration of Rs 5 crores at the end of the third year provided the revenue projections as per business plan are met. While filing the tax return for 2024-25, and computing capital gains, what should be the total value of consideration – should it be Rs. 25 crores or Rs. 30 crores? If Rs. 5 crores is not to be taxed in year 1, should it be taxed in the year of 2027/28 of actual receipt or should the original return be revised after the earn out is received? Can any exemption be claimed against earn out of Rs. 5 crore, 3 years investment time limit from the original share transfer date would be Over? |
| Liability of private Limited Company , recovery from Directors? | |
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| Excerpt of query: | Whether liability of the private limited company can be recovered from the Directors of the said company? |
| Adjustment of demand, without giving notice ? | |
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| Excerpt of query: | Whether adjustment of demand raised in earlier years against the refund of the current year can be made by the Assessing Officer without giving any notice u/s 245 of the Act? |
| Fresh assessment , barred by limitation ? | |
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| Excerpt of query: | What is the effect of fresh assessment order passed by the Assessing Officer in pursuance to order passed by Tribunal, which is barred by limitation? |
| Loan to invest in partnership firm , interest paid , deduction? | |
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| Excerpt of query: | The Assessee is Partner in the Partnership Firm. It earns Share of Profit, Remuneration & Interest on the Fixed Capital as well as Current Account from the Firm. The Assessee had taken Loan and invested the same as Fixed Capital as well as Current Account of the firm. |
| Taxation of Salary, bonus linked profits of the company ? | |
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| Excerpt of query: | As per the terms of employment agreement, an employee is eligible to receive a bonus linked to the profits of the company at the end of the financial year (April-March). The employee’s salary income (other than bonus) is Rs. 10 crores. The company determined the bonus payable based on the audited accounts during the Board meeting held on July 10,2023. The bonus was be paid to the employee on July 15, 2023. The employer company deducted tax u/s, 192 by applying a personal tax rate. Can the employee offer a bonus in his personal income tax return for Financial year 2022-23 basis that the bonus become due to him on March 31, 2023? If yea, how ill this be reflected practically in the Income tax Department’s system and the taxpayer’s return of income. |
| Transfer of depreciable capital asset ? | |
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| Excerpt of query: | Company A has transferred a depreciable capital asset to its wholly owned subsidiary company B during the year 2018. The WDV value in the hands of the company A as on date of transfer is Rs. 10 crs. As per the independent valuer report the value of the said asset is Rs. 8 crs. The company B has been claiming depreciation on WDV value of 10 crs. During the year (June 2020), company A ceased to hold 100% shareholding in company B. a) How to give effect to provisions of S. 47A and S. 49(3). Alternatively, would the situation be different if the capital asset would have been valued at Rs. 12 crores by independent valuer. b) Whether withdrawal of such exemption under section 47A will have any tax implication under section 56(2)(x) in the hands of WHOS since earlier the receipt was excluded from 56(2)(x) by virtue of 1st proviso to clause (x) of section 56(2). c) Whether Company needs to revise its of deprecation and how to give effect of same in Tax Audit and Return of income. |
| Section 54F Exemption , second house ? | |
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| Excerpt of query: | An individual purchased a second house property in December 2018 for a total consideration of Rs. 1.15 crores The individual borrowed a home loan from a nationalized bank to the extent of Rs. 1.20 crores. The individual received the possession of the house in April 2020 and he started occupying the house from June, 2020 In December 2020, the individual sold the shares of a private limited company for a total consideration of Rs. 2 crores. (cost of acquiring the shares was negligible and shares were held since 2014). Out of the money received from sale of shares, the individual repaid the entire home loan of Rs. 1. 20 crores in January 2021. Can the individual claim exemption u/s. 54F from long term capital gains arising on sale of shares against repayment of home loan? |
| Investment in the name of Son , exemption ? | |
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| Excerpt of query: | a) Whether deduction u/s 54/54F is available to the assessee if the investment is made in the residential house in the name of son, out of capital gain/net consideration arose on acquisition of his inherited farmland (agriculture) by the Government? b) Whether son has to face any taxation on account of purchase of flat or any other tax consequences? |
| Accounting entries in the books of the firm , Reconstitution of firm ? | |
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| Excerpt of query: | In continuation to what has been discussed in question number three above what would be the accounting entries in books of account of the firm on recording the same. Will the firm would liable to pay tax again when the stock in trade is actually sold or can the firm rate increase the value of its stock in trade, to the extent, the excess amount paid to the outgoing partner.? |