Section 94(8) - BONUS STRIPPING
Section 94(8) - BONUS STRIPPING
Bonus stripping [Section 94(8)] : Where –
(a) any person buys/acquires any units ('original units') within a period of 3 months prior to record date;
(b) such person is allotted additional units without any payment on the basis of holding of such units on such date; and
he sells or transfers all or any of the original units referred to in
(a) within a period of 9 months after such date, while continuing to hold all or any of the bonus units referred to in (b), (a) the loss, if any, arising to him on account of purchase and sale of original units shall be ignored in computing his total income, and (b) the loss so ignored shall be deemed to be the cost of purchase or acquisition of such bonus units referred to in (b) as are held by him on the date of such sale or transfer.
Q1. - Computation of gross total income : J furnishes the following particulars relating to his house properties and other incomes and expenditure for the year 2019-20 :
(1) First House : This house is taken by him on lease for 10 years which is let to a tenant, for his residence, at a monthly rent of 2,400. He has incurred the following expenses during this year :
Lease rent 1000 per month
Salary of Durban 200 per month
Interest on loan taken to pay for the acquisition of the lease 200 per month
(2) Second House : This house was constructed by him in 1988, but was transferred to his wife in 1992 out of love and affection. He, however, continues to stay in this house with his wife till date. He has taken a loan for the construction of this house for which interest of 6,000 becomes due for the year, but had not been paid by him. He has paid repair expenses of 1,000 during the year.
(3) Taxable income from business for this year amounts to 64,000. Compute gross total income of J for the assessment year 20-21.
Solution: Computation of Gross Total Income of J (amounts in ₹)
Income from House Property
Net Annual Value of Self-occupied HOUSE II
Less: Interest on borrowed capital
Profits and Gains from Business or Profession
Income from other sources
Rent of House I ( 2,400 x 12)
Less: Lease rent (1,000 x 12)
Salary of Durban (200 x 12)
Interest on loan taken to pay for the acquisition of the lease (200 x 12)
Gross Total Income
Working Notes :
(1) Since Second House has been transferred by Mr. J to his wife without adequate consideration, hence he shall be to be the deemed owner of such house . Thus, the same is taxable in his hands.
(2) Since First House is taken by Mr. J on lease of 10 years i.e. less than 12 years, hence he is not the deemed owner of this house. Thus, income from this house shall be taxable in the hands of Mr. J under the head 'Income from Other Sources'.
Watch Demo Video for Taxation for CA/CMA Inter:https://www.conceptonlineclasses.com/demovideos
Visit Website: https://www.conceptonlineclasses.com/
Where To Get Best CMA Online Classes In India
COC Education is India's Best Institute To Get CMA Classes.
Who is The Best Faculty For Accounts?
You need the Best Faculty For Accounts, CA Exam Preparation, so that you can pass your exam with Flying Colors without wasting a single minute of your Precious Time. A Good Faculty will not only help you clear your exam but also help you achieve the highest rank Possible, which proves to be surely a great advantage in Job Placement after completing CA.
Best Video Lectures for Operations Management & Strategic Management (OMSM) CMA Inter Group-2
OMSM Operations Management and Strategic Management. Get your Video Lectures Operations Management and Strategic Management from COC Education
Introduction to Statistics for CA Foundation
Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics
Chapter X of Companies Act 2013
Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448
What is Corporate Image
What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage
What is Energy Audit
What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit