01-27-2010, 04:46 PM
AoA i have the following queries.
1. As per section 5 dividend received by every person is subject to final tax. But a proviso in section 8 clearly says that this provision does not apply to dividend receive by a company. Section 39 income from other sources include dividend as source of income. Based on the above facts i wana know whether
"Dividend received by a company will be taxed in income from other sources and will be adjustable against losses availble from other heads.and in case it is fully adjusted against losses then the tax paid @ 10% will be refundable or not.
2. As per subsection 13 of Section 22 (Depreciation) cost of passenger trasnport vehicle is restricted to Rs. 1.5 Million. Now suppose a vehicle is purchased in tax year 2009 for Rs. 2,500,000. It is disposed off in the tax year 2012 for Rs.1,500,000. Based on above facts i calculate gain or loss as
Cost in tax year 2009 1,500,000
Dep for the year @ 15% 225,000
Wdv in tax year 2010 1,275,000
Dep for tax year @ 15% 191,250
Wdv at start of Ty 2011 1,083,750
Dep for the year 162,562
WDV at start of TY 2012 921,188
proportionate sale proceed is 1,500,000 x 1500,000/2,500,000 = 900,000
so gain/(loss) is 921,188-900,000 = (21,188)
now my questions are
(a)is the above working correct or should we increase the Tax wdv by the amount not allowed as depreciation.i.e Rs.(2,500,000-1,500,000)=1,000,000 hence loss will be increased by same amount.
(b)what is the treatment of consideration not accounted for in the above calculation. i.e Rs.(1,500,000-900,000)=600,000. Is this receipt not taxable under any head of income.
And my last query is
3. Income from other sources include ground rent. But rent is taxable as separate block under the head income from property. is their any chance of property income being taxed in income from other sources?
waiting anxiously for a positive response from you people.
1. As per section 5 dividend received by every person is subject to final tax. But a proviso in section 8 clearly says that this provision does not apply to dividend receive by a company. Section 39 income from other sources include dividend as source of income. Based on the above facts i wana know whether
"Dividend received by a company will be taxed in income from other sources and will be adjustable against losses availble from other heads.and in case it is fully adjusted against losses then the tax paid @ 10% will be refundable or not.
2. As per subsection 13 of Section 22 (Depreciation) cost of passenger trasnport vehicle is restricted to Rs. 1.5 Million. Now suppose a vehicle is purchased in tax year 2009 for Rs. 2,500,000. It is disposed off in the tax year 2012 for Rs.1,500,000. Based on above facts i calculate gain or loss as
Cost in tax year 2009 1,500,000
Dep for the year @ 15% 225,000
Wdv in tax year 2010 1,275,000
Dep for tax year @ 15% 191,250
Wdv at start of Ty 2011 1,083,750
Dep for the year 162,562
WDV at start of TY 2012 921,188
proportionate sale proceed is 1,500,000 x 1500,000/2,500,000 = 900,000
so gain/(loss) is 921,188-900,000 = (21,188)
now my questions are
(a)is the above working correct or should we increase the Tax wdv by the amount not allowed as depreciation.i.e Rs.(2,500,000-1,500,000)=1,000,000 hence loss will be increased by same amount.
(b)what is the treatment of consideration not accounted for in the above calculation. i.e Rs.(1,500,000-900,000)=600,000. Is this receipt not taxable under any head of income.
And my last query is
3. Income from other sources include ground rent. But rent is taxable as separate block under the head income from property. is their any chance of property income being taxed in income from other sources?
waiting anxiously for a positive response from you people.
