10 March 2015
An Assessee aged 66 year having other income 1.5 lac and eligible deduction u/s 80c is 50000. long term capital gain is Rs. 20 lac from sale of a plot on dated 18.10.2014. what is his tax liability and when he has to deposit the tax
10 March 2015
In case of senior citizen the basic exemption limit is 3 lacs. and no benefit u/s 80 c shall be available against capital gain.
therefore in the given situation the amount of capital gain after taking benefit of basic exemption limit shall be (20lacs+1.5lacs-3lacs) 18.50 lacs
rate of tax payable on long term capital gain shall be 20%
Hence the tax Liability shall be 18.5*20%=3.7 lacs.
In case the amount of tax payable is more than 10 thousand then advance tax shall be payable in the installments upto 15th june - 15 upto 15th sep - 45 upto 15th dec - 75 upto 15th mar - 100
it is difficult to determine the tax liability in case of LTCG. so the amount shall be paid by remaining installment period.
in the given situation the date of december was the due date for payment of Advance tax which has not been paid.
so the assessee is required to pay 75% of the amount together with interest @1% for the part of month. and also pay atleast 90% of the advance tax by the end of 15th March.
Calculation Capital gain - 18.5 Tax @ 20% - 3.7 intt @1% pm from Dec to Mar - .11 total - 3.81
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