capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 May 2011 Hello Friends,

Kindly give your suggestions in the below

Re the relief provided in proviso to S 112(1)(a) of IT Act, wherein it is stated that if the Gross total income other than LTCG is below the taxable limit then tax will be computed on

LTCG - {Exemption Limit-(Taxable income - LTCG)}

My query is if I have LTCG of Say Rs 1000 and other taxable income of say Rs 149000. (For Women resident) How will the amount be calculated Since The answer to the above equation is negative. At whast rate and whether with or without indexation.

Also if I have another 1500 in STCG whether the treatment will be same since a similiar relief exists u/s 111A

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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17 May 2011 Proviso to section 112(1)(a) provides that where the total income as reduced by long-term capital gains is below the maximum amount which is not chargeable to income-tax then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent say for example in case of an individual
IN THE GIVEN CASE THE DIFFERENCE BET BASIC LIMIT OF RS190000 AND OTHER INCOME 149000 IS 41000 HENCE THIS 41000 WILL BE REDUCED OUT OF 1O00 LTCG AND SINCE BALANCE IS NIL HENCE NO TAX WILL BE PAYABLE
LTCG FOR THIS PURPOSE MAY BE COMPUTED WITH OR WITHOUT INDEXATION
SIMILAR WILL BE THE CASE WHERE STCG REF TO IN SECTION 111A IS THERE
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