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FINANCIAL CHRONICLE™ » CORPORATE CHRONICLE™ » Profit or Capital Gain ?

Profit or Capital Gain ?

+5
worthiness
Chinwi
bullseye
point
sapumal
9 posters

Go down  Message [Page 1 of 1]

1Profit or Capital Gain ? Empty Profit or Capital Gain ? Thu Nov 17, 2016 6:32 pm

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
1.6.5 Removal of certain exemptions
Following exemptions will be removed with effect from 1 April 2017 -
(i) Dividends to be identified;
(ii) Interest income to be identified;
(iii) Profits from investment on listed securities and other instruments;
(iv) Exemption up to LKR5,000 per month on interest on savings accounts;
(v) Exemption on interest on deposits made by the senior citizens will be limited to
LKR1.5Mn per annum.

Profit vs Gain
So people know the exact definition collect/dispose the shares.
We wait to hear the definition until they finished

2Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Thu Nov 17, 2016 7:24 pm

point

point
Manager - Equity Analytics
Manager - Equity Analytics
@sapumal wrote:1.6.5 Removal of certain exemptions
Following exemptions will be removed with effect from 1 April 2017 -
(i) Dividends to be identified;
(ii) Interest income to be identified;
(iii) Profits from investment on listed securities and other instruments;
(iv) Exemption up to LKR5,000 per month on interest on savings accounts;
(v) Exemption on interest on deposits made by the senior citizens will be limited to
LKR1.5Mn per annum.

Profit vs Gain
So people know the exact definition collect/dispose the shares.
We wait to hear the definition until they finished
meka kohenda gatte bro

3Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Thu Nov 17, 2016 7:29 pm

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
https://www.pwc.com/lk/en/budget2017.html

4Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Thu Nov 17, 2016 7:37 pm

point

point
Manager - Equity Analytics
Manager - Equity Analytics
@sapumal wrote:https://www.pwc.com/lk/en/budget2017.html
thank you saho

5Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 2:34 am

bullseye

bullseye
Manager - Equity Analytics
Manager - Equity Analytics
kiyana deyak terenda kiyanako

6Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 9:01 am

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@sapumal wrote:1.6.5 Removal of certain exemptions
Following exemptions will be removed with effect from 1 April 2017 -

(iii) Profits from investment on listed securities and other instruments;

Profit vs Gain
So people know the exact definition collect/dispose the shares.
We wait to hear the definition until they finished

Thank you Sapumal for highlighting this.

Listed securities kiyanne/means Shares .  Other instruments  ??  they can add anything they wanted  Evil or Very Mad .

Profits from investment on listed securities =  Profit we get from buying and selling shares !

No capital gain tax but you have to pay income tax !

මේක හරියට හොයා ගන්න .


I will write after consulting



Last edited by Chinwi on Fri Nov 18, 2016 9:21 am; edited 1 time in total

7Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 9:15 am

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
"(v) Exemption on interest on deposits made by the senior citizens will be limited to LKR1.5Mn per annum."

Rs.1m is the maximum deposit made by senior citizens at the rate of 15% per year. At the end of the year Rs. 150,000 will be the interest income which is entirely tax free.

Budget 2016 proposal to increase senior citizens deposit from Rs.1m to Rs.1.5m was not implemented. 

Did 2017 budget implement 2016 budget proposal?? Rs.1,5m???

8Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 9:28 am

PrasannaMani

PrasannaMani
Manager - Equity Analytics
Manager - Equity Analytics
@Chinwi wrote:
@sapumal wrote:1.6.5 Removal of certain exemptions
Following exemptions will be removed with effect from 1 April 2017 -

(iii) Profits from investment on listed securities and other instruments;

Profit vs Gain
So people know the exact definition collect/dispose the shares.
We wait to hear the definition until they finished

Thank you Sapumal for highlighting this.

Listed securities kiyanne/means Shares .  Other instruments  ??  they can add anything they wanted  Evil or Very Mad .

Profits from investment on listed securities =  Profit we get from buying and selling shares !

No capital gain tax but you have to pay income tax !

මේක හරියට හොයා ගන්න .


I will write after consulting
Income Tax –Revisions to Existing Exemptions

Direct Tax
Dividend from any Unit Trust or Mutual Fund
•The tax exemption granted from 01 April 2007 on dividends paid by any Unit Trust or Mutual Fund to a unit holder will be revised to exclude corporate sector investors.
Profits and income from investment in listed securities and other instruments

•Prevailing tax exemptions on certain dividends, interest and profits from investments made in listed securities (e.g. corporatedebt securities) and other instruments will be removed

9Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 9:45 am

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
@Chinwi wrote:
@sapumal wrote:1.6.5 Removal of certain exemptions
Following exemptions will be removed with effect from 1 April 2017 -

(iii) Profits from investment on listed securities and other instruments;

Profit vs Gain
So people know the exact definition collect/dispose the shares.
We wait to hear the definition until they finished

Thank you Sapumal for highlighting this.

Listed securities kiyanne/means Shares .  Other instruments  ??  they can add anything they wanted  Evil or Very Mad .

Profits from investment on listed securities =  Profit we get from buying and selling shares !

No capital gain tax but you have to pay income tax !

මේක හරියට හොයා ගන්න .


I will write after consulting
Thanks Chinwi. Please let us know.
Ravi K told there is no capital gain tax for share market before the budget. I am not clear what he meant by capital gain on share market. Yesterday someone asked from RK about it in FT post budget forum (on U tube). But Ravi not answered to that question.

10Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 9:56 am

EquityChamp

EquityChamp
Moderator
Moderator
Ministry of Finance has introduce three telephone numbers to get clarity on budget proposals. You can directly dial and ask the questions. Numbers are as below.

0710242314
0710242310
0710242311

You can call now itself.

Thanks

11Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 10:03 am

samaritan


Moderator
Moderator
@EquityChamp wrote:Ministry of Finance has introduce three telephone numbers to get clarity on budget proposals. You can directly dial and ask the questions. Numbers are as below.

0710242314
0710242310
0710242311

You can call now itself.

Thanks
Thanks EC, I called 0710242314 and was told that the CGT is applicable only for immovable property and not for share transactions.


_________________




The biggest risk in life is not taking any risk at all.

12Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 11:28 am

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
@samaritan wrote:
@EquityChamp wrote:Ministry of Finance has introduce three telephone numbers to get clarity on budget proposals. You can directly dial and ask the questions. Numbers are as below.

0710242314
0710242310
0710242311

You can call now itself.

Thanks
Thanks EC, I called 0710242314 and was told that the CGT is applicable only for immovable property and not for share transactions.
The sold price - bought price is considered as profit or CG ?

13Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 11:36 am

EquityChamp

EquityChamp
Moderator
Moderator
This has to be cleared with them. Whether listed securities includes stocks. And the definitions for Capital Gain and profit from listed securities.

Why don't you call one of the above numbers.

Thanks

14Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 11:50 am

sapumal


Vice President - Equity Analytics
Vice President - Equity Analytics
@EquityChamp wrote:This has to be cleared with them. Whether listed securities includes stocks. And the definitions for Capital Gain and profit from listed securities.

Why don't you call one of the above numbers.

Thanks
Listed securities includes stocks and every thing in a exchange.

definitions for Capital Gain and profit from listed securities is the Key because tax is applicable only for profit not for gains.

15Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 12:58 pm

ifenny

ifenny
Senior Equity Analytic
Senior Equity Analytic
Gains = Unrealized profit ? = No tax
Profit = Realized gain (profit) ? = taxed.

if above is the case selling will reduce ?

16Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 5:36 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Many will indicate the low selling price in the sale contract or deed intentionally to pay less CGT in the future. In that case, there must be a system of independent valuation of the property subject to sale where some malpractices arise. Strict rules are required to monitor the CGT system without loopholes.

17Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 6:57 pm

samaritan


Moderator
Moderator
@worthiness wrote:Many will indicate the low selling price in the sale contract or deed intentionally to pay less CGT in the future. In that case, there must be a system of independent valuation of the property subject to sale where some malpractices arise. Strict rules are required to monitor the CGT system without loopholes.
Respective Provincial Council offices have valuation officers to value immovable properties. So, they may go by that valuation in case under valuation is suspected.


_________________




The biggest risk in life is not taking any risk at all.

18Profit or Capital Gain ? Empty Re: Profit or Capital Gain ? Fri Nov 18, 2016 7:03 pm

worthiness


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
What happens if the valuation officers are bribed which is very common practice from top to bottom???

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