Taxation Puzzle
tax clat_ug intermediate mcq_debateMere dost Ramesh aur main pehle se difference rakh rahe hain aaj tak. Question hain: A company donates a building worth Rs 10 lakhs to a charitable trust. The market value of the building is Rs 20 lakhs. Which one of the following is correct?
Option A: The amount of Rs 10 lakhs is the actual cost to the company, and it can claim a deduction under s. 43AC of the Income Tax Act.
Option B: The amount of Rs 20 lakhs is the market value, and it can be claimed as a deduction under s. 43AC of the Income Tax Act.
Main bolta hu Option A, kyonki actual cost to the company Rs 10 lakhs hai. Lekin Ramesh keh raha hai Option B sahi hai, kyunki yeh market value hai.
1 comments
1 Comments
Sign in to join the discussion.
Hey guys, clarification on Taxation Puzzle thread. Tax on taxable capital gain is not the same as the tax on non-taxable capital gain. Tax on taxable capital gain is levied as per the income tax slab rate, waise to say it's taxed as regular income. Confused? Think of it this way - taxable gain is like your salary, non-taxable gain is like your inheritance.