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Capital Gains on Compensation of Compulsory Acquisition

Direct Taxation

answered on 02-May-24 11:45

Dear Sir, Mr.A Land worth Rs. 30 lakh was compulsorily acquired by Govt. He got a part of Compensation Receipt in Year 2022 = Rs. 10 lakh For this Rs. 10 lakh, Can we show Rs. 10 lakh - Indexed Cost = Long term Capital Loss Further, On receipt of Enhanced Compensation on further years, Can we Set off this Long term Capital loss to Enhanced compensation receipt. Please kindly clarify sir.

latest answer

Even though he gets part of compensation, tax would be computed on entire compensation. Since as per Section 45(5), CG would arise in the year in which entire or any part is received. Even if part is received, CG would be computed on full amount of compensation.

Mamidi Vinisha

Mamidi Vinisha

CA Inter

970

1

474

CA FINAL DIRECT TAXATION

Others

answered on 29-Apr-24 11:52

Dear Sir, When Direct Tax will be launched on Indigo Learn ? Please kindly clarify sir

latest answer

We are sorry that we are not providing CA Final direct tax course.

Mamidi Vinisha

Mamidi Vinisha

CA Inter

970

4

325

Sale of subsidiary

Financial Reporting

answered on 29-Apr-24 19:26

In the question where the control stake has gone. After sale entry from the consolidated FS, why we are recognising the value of stake at fair value rather than at cost.

latest answer

Equity instruments are generally recognised at FVTPL. Refer financial instruments.

Visakh Sabu

Visakh Sabu

CA Final

20K+

1

179

Presumptive Taxation & Capital Gains

Direct Taxation

answered on 27-Apr-24 10:21

Respected Sir, Mr.A purchased land on Jan 1, 2024 for Rs. 40 lakh Mr.A converted Land into Stock in trade on next day Jan 2,2024. In this case, Can STCG be taken as ZERO as FMV and Cost of Aquisition is same sir ?

latest answer

Most welcome

Mamidi Vinisha

Mamidi Vinisha

CA Inter

970

3

347

Job Work

Indirect Taxation

answered on 29-Apr-24 00:43

Whether e-way bill is mandatory for sending goods to the job worker place (Intra-State)

latest answer

Thank you Shiva sir.

Surya Ravi

Surya Ravi

CA Final

4K+

2

311

Ind AS102 share based payment

Financial Reporting

answered on 02-May-24 09:29

Video No 26 Illustration 16 Anara Fertilisers issued 2000 share options. In this question first year employee share based payment expense is 693333 second year it is 1646667 total amount credited to SPB equity at the end of second year is 2340000 (693333+1646667). At the time of cancellation Rs 1620000 is debited to SPB (Equity Reserve). The balance amount in SPB (Equity Reserve) 720000 (2340000 - 1620000). How this balance amount is closed

latest answer

It will be retained in equity or transferred to other equity

swaminathan sundaram

swaminathan sundaram

CA Final

110

1

364

Payment voucher

Indirect Taxation

answered on 27-Apr-24 10:10

In payment voucher as it is issue by recepient in RCM, sign should be of recepient right?

latest answer

As per Rule 52, signature of supplier is required but the payment voucher is issued by recipient only at the time of making payment to Supplier.

Liz James

Liz James

CA Inter

2K+

1

203

Strategic choices

Strategic Management

answered on 27-Apr-24 10:35

Can we say that producing complimentary products comes under horizontal diversification

latest answer

No. I think it's cogeneric

Prasoon Tiwari

Prasoon Tiwari

CA Inter

4K+

2

312

Marginal costing

Costing

answered on 27-Apr-24 08:57

How to proceed with this question?

latest answer

It does not matter. Contribution from product 1 + contribution from product 2 = total contribution Total contribution minus joint fixed cost = total profit

Devisree

Devisree

CMA Final

0

3

373

Marginal costing

Costing

answered on 05-Jun-24 09:28

calculate break even point for a train journey between Delhi and Jaipur where the cost of an engine is 80000 and bogie is 16000 the capacity of your body is 70 passengers and each ticket is priced at Rs 600 the variable cost per ticket is 100 whether answer is 192 or 320 ?? Which is correct??

latest answer

It is (80,000 + 16,000) / 500 500 is the contribution per unit

Devisree

Devisree

CMA Final

0

3

807