sejal architectural glass limited - Securities and Exchange Board of ...

Benefits available to the Company under the Income Tax Act, 1961.
1. Deduction under Section 80-IB of the Act
The profits of the Proposed Plant would be eligible for deduction @ 100% under section 80-
IB of the Act for the period of first five years after commencement of commercial
production and thereafter @ 30% for the next five years. The profits of the float glass
division for the purposes of Section 80-IB of the Act shall be computed on a stand-alone
basis. The benefit is available subject to fulfilment of the conditions prescribed under that
section.
2. Under Section 10(34) of the Act, dividend income (whether interim or final) in the hands of
the company as distributed or paid by any other Company is fully exempt from tax in the
hands of the Company.
3. As per the provisions of Section 112 (1) (b) of the Act, long-term capital gains would be
subject to tax at the rate of 20% (plus applicable surcharge and education cess). However,
as per the proviso to Section 112(1), the long term capital gains resulting on transfer of
listed securities or units (not covered by section 10(36) and 10(38)), would be subject to
tax at the rate of @ 20% with indexation benefits or 10% without indexation benefits (plus
applicable surcharge and education cess) as per the option of the assessee.
4. Long term capital gain arising from transfer of an ‘Eligible Equity Share’ in a company
Purchased on or after the 1st day of March, 2003 and before the 1st day of March, 2004
(both days inclusive) and held for a period of 12 months or more is exempt from tax under
section 10(36) of the Act.
5. As per the provisions of section 10(38), long term capital gain arising from the sale of
Equity Shares in any company through a recognized stock exchange or from the sale of
units of an equity oriented mutual fund shall be exempt from Income Tax if such sale takes
place after 1 st of October 2004 and such sale is subject to Securities Transaction tax.
6. As per the provisions of section 111A, Short Term capital gains arising from the transfer of
Equity Shares in any company through a recognized stock exchange or from the sale of
units of equity oriented mutual fund shall be subject to tax @ 10% provided such a
transaction is entered into after the 1st day of October, 2004 and the transaction is subject
to Securities Transaction Tax.
7. In accordance with and subject to the conditions and to the extent specified in Section
54EC of the Act, the Company would be entitled to exemption from tax on gains arising
from transfer of the long term capital asset (not covered by section 10(36) and section
10(38)) if such capital gain is invested in any of the long-term specified assets in the
manner prescribed in the said section. Where the long-term specified asset is transferred
or converted into money at any time within a period of three years from the date of its
acquisition, the amount of capital gains exempted earlier would become chargeable to tax
as long term capital gains in the year in which the long-term specified asset is transferred
or converted into money.
8. As per the provisions of Section 54ED of the Act and subject to the conditions specified
therein, capital gains arising from transfer of long term assets, being listed securities or
units (not covered by section 10(36) and section 10(38)) shall not be chargeable to tax
to the extent such gains are invested in acquiring Equity Shares forming part of an ‘eligible
issue of share capital’ in the manner prescribed in the said section.
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