Mr. X transferred his residential house property in the Previous year 2016-17 on 10th April 2016 and invested the entire net sale consideration of ₹ 10,00,000 in equity shares of an eligible startup company on the same day. The startup company acquired assets by using the proceeds. It acquired a computer and computer software worth ₹ 10,00,000 on 15.6.2016. It sold the computer along with the software on 20.06.2019. Compute the taxable income of Mr. X due to sale by the eligible startup for the Assessment year 2020-21.
A. The exemption availed in 2016-17 will be taxable in P.Y. 2019-2020, as the computer is sold within 5 yrs. from date of acquisition.
B. The exemption availed in 2016-17 will be taxable in P.Y. 2019-20, as the computer is sold within 5 yrs. from date of acquisition along with the capital gains on sale of computer and software if any.
C. As the computer is sold after 3 years, nothing will be taxable.
D. None of the above.
Answer:C
Mr. X transferred his residential house property in the Previous year 2016-17 on 10th April 2016 and invested the entire net sale consideration of ₹ 10,00,000 in equity shares of an eligible startup company on the same day. The startup company acquired assets by using the proceeds. It acquired a computer and computer software worth ₹ 10,00,000 on 15.6.2016. It sold the computer along with the software on 20.06.2019. Compute the taxable income of Mr. X due to sale by the eligible startup for the Assessment year 2020-21.
A. The exemption availed in 2016-17 will be taxable in P.Y. 2019-2020, as the computer is sold within 5 yrs. from date of acquisition. B. The exemption availed in 2016-17 will be taxable in P.Y. 2019-20, as the computer is sold within 5 yrs. from date of acquisition along with the capital gains on sale of computer and software if any. C. As the computer is sold after 3 years, nothing will be taxable. D. None of the above.