Long-term capital gains on selling shares after a year

* 15 days salary multiplied by length of service (number of years) Rs 10 lakh

* Gratuity actually received (ie Rs 6 lakh). Therefore,in your case,the amount of gratuity exempted would be least of the above.

I will be working in the US for 7 months in FY11. Will my salary in the US taxable in India?

As per section 5(1) of Income Tax Act,1961,the global income of a resident Indian is taxable in India. As per the provision of Income Tax Act,1961 an individual leaving India during the previous year for employment is said to be resident in India,if he is in India in the previous year for 182 days or more. You would be considered as NRI for the previous year 2010-11 as you will be in India for less than 182 days. As such,the salary received in the US shall not be taxable in India.

I am holding 250 shares of a BSE-listed company from January 2008,on which I received 50 bonus shares in April,2009. Now the share price has increased and I plan to sell them this month. I want to know the taxability of capital gains that I will earn after selling all the shares?

As the shares are listed on a recognised stock exchange and you have held them for more than 12 months,the gains from their sale would be long-term capital gain. The long-term capital gains arising from sale of the shares including bonus shares would be exempt from tax provided the sale is made through a recognised stock exchange and security transaction tax has been paid.

I have set up a proprietary retail trading business of goods and expect a turnover of Rs 30 lakh for FY11. I want to know the tax implication as I was advised to opt for presumptive taxation and if there is no requirement to maintain the books of account. Kindly advise?

As you are in the retail trading business of goods and your turnover is not expected to cross Rs 60 lakh,you can opt for the presumptive taxation as provided under section 44AD of the Income Tax Act. Under presumptive taxation,your income will be computed at 8% of the total turnover. Also,you are not required to maintain your books of account as per the provisions of the Income Tax Act.

—* The author is founder of RSM Astute Consulting Group