I am creating a topic to discuss various queries on corporate income tax, dividend tax, capital gains for corporate, tax holidays etc. Believe most of us try to identify value while being in the dark about 10-15% of the company’s expenses that are primarily taxes. A company that makes 25% EBT and paying 30% income tax (30%*25 = 7.5) is spending 10% of its money only on income tax. Then comes DDT, CSR taxes, income tax cess etc.
We need active participation of certified people in this forum (CAs). While I am reasonably aware of rules, I am not certified and not sure of my knowledge on these most times.
My first question is on capital gains on sale of subsidiary. I believe it would be capital gains tax after indexation if the holding is more than 3 years and not corporate income tax rates. Am I right?
Thanks in advance