APR Constructions Limited - Saffron Capital

months from the date of transfer in the purchase of a long-term specified asset. The long-term specified assets
notified for the purpose of investment are bonds of Rural Electrification Corporation Ltd. (REC) and National
Highways Authority of India (NHAI). Investment in these specified assets cannot exceed Rs. 50 lakhs during any
financial year.
• If only a part of the capital gain is so invested, the exemption would be limited to the amount of the capital gain
so invested.
• If the specified asset is transferred or converted into money at any time within a period of three years from the
date of acquisition, the amount of capital gains on which tax was not charged earlier shall be deemed to be
income chargeable under the head “Capital Gains” of the year in which the specified asset is transferred.
• In accordance with section 111A, capital gains arising from the transfer of a short term asset being an equity
share in a company and such transaction is subject to securities transaction tax, the tax payable on the total
income shall be the aggregate of (i) the amount of income-tax calculated on such short term capital gains at the
rate of 15% (plus applicable surcharge and „education cess and secondary & higher education cess‟ ) and (ii) the
amount of income-tax payable on the balance amount of the total income as if such balance amount were the total
income.
D) Persons carrying on business or profession in shares and securities.
Securities transaction tax paid in respect of taxable securities transaction entered during the course of business will be
available as deduction under section 36(1)(xv) while computing the taxable business income.
E) Mutual Funds
In accordance with section 10(23D), any income of:
i. a Mutual Fund registered under the Securities and Exchange Board of India Act 1992 or regulations made
there under;
ii. such other Mutual Fund set up by a public sector bank or a public financial institution or authorised by the
Reserve Bank of India subject to such conditions as the Central Government may, by notification in the
Official Gazette, specify in this behalf,will be exempt from income-tax.
F) Venture Capital Companies / Funds
In accordance with section 10(23FB) any income of a venture capital company or venture capital fund (registered
under the Securities and Exchange Board of India Act, 1992 and regulations made there-under and notified in this
behalf) from investment in a venture capital undertaking will be exempt from income tax.
(II) Under the Wealth Tax
„Asset‟ as defined under section 2(ea) of the Wealth-tax Act, 1957 does not include shares in companies and hence,
these are not liable to wealth-tax.
For J.B.Reddy & Co.,
Chartered Accountants
Sd/-
A.V.Reddy
Partner
M.No. 23983
FRN: 003256S
Place: Hyderabad
Date: March 01, 2011
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