10-05-2011, 11:57 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />thnks student of law. it means no tax will be charged on this sale
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have not said so. If their is capital gain on this sale, that capital gain is not chargeable under the Head Capital Gains by virtue of s.37(5)(d). But I am not clear on the point whether this gain would be chargeable to tax under the Head Income From Other sources or not.
there may be two interpretations. <b><u>First</u></b>, As this income is no where expressly declared exempt and it is not covered under the head capital gain hence it is chargeable under the head Income from other sources.
<b><u>Second</u></b>, Non-inclusion of personal asset in the category of capital assets [section 37(5)(d)] , itself mean that this income is exempt from tax. Furthe, chargeability to tax is another issue, but generally this income falls under the head capital gain. Income which falls under any other head cannot be charged to tax under the head income from other source, in the light of its description under s.39(1)
If former intepretation is true then this income will be charged to tax as income from other sources. If latter is true this, income will be exempt. I don't know which interpretation would be true.
I will try to consult case law, and others are also invited to quote any useful case law on the topic.
<br />thnks student of law. it means no tax will be charged on this sale
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
I have not said so. If their is capital gain on this sale, that capital gain is not chargeable under the Head Capital Gains by virtue of s.37(5)(d). But I am not clear on the point whether this gain would be chargeable to tax under the Head Income From Other sources or not.
there may be two interpretations. <b><u>First</u></b>, As this income is no where expressly declared exempt and it is not covered under the head capital gain hence it is chargeable under the head Income from other sources.
<b><u>Second</u></b>, Non-inclusion of personal asset in the category of capital assets [section 37(5)(d)] , itself mean that this income is exempt from tax. Furthe, chargeability to tax is another issue, but generally this income falls under the head capital gain. Income which falls under any other head cannot be charged to tax under the head income from other source, in the light of its description under s.39(1)
If former intepretation is true then this income will be charged to tax as income from other sources. If latter is true this, income will be exempt. I don't know which interpretation would be true.
I will try to consult case law, and others are also invited to quote any useful case law on the topic.
