Wonderland Limited has excess cash of ₹20 lakhs, which it wants to invest in short term marketable securities. Expenses relating to investment will be ₹50,000. The securities invested will have an annual yield of 9%. The

CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · PYQS · June 2025
Wonderland Limited has excess cash of ₹20 lakhs, which it wants to invest in short term marketable securities. Expenses relating to investment will be ₹50,000. The securities invested will have an annual yield of 9%. The company seeks your advice: (ii) the minimum period for the company to break even its investment expenditure overtime value of money.

Answer & Explanation:

Answer 6(b)(ii) ii. Break-Even its investment expenditure (₹20,00,000 * 9/100 * P/12) - ₹50,000 = 0 P = 3.33 months

Topics: Corporate Tax Planning

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