Tax payable on Capital Gains

This query is : Resolved 

18 July 2008 My client who is a residend women below 65 yrs of age.Her Income for A.Y. 2008-09 consist of Rs. 3.00 lacs from long term capital gains eligible for special rate of tax u/s 112 & Rs. 3.00 lacs from short term capital gains eligible for special tax rate u/s 111A. She has no other income. She has also made investment of Rs. 1.00 lac for claiming deduction u/s 80-C.
Please compute tax liability.

18 July 2008 IN SHORT TERM CAPITAL GAIN = 300000
INCOME = 300000

LESS 80 C = 100000

TAXABLE INCOME= 200000-145000=55000
(EXCLUDING LTCG)
TAX ON ABOVE = 5500

INCOME FROM LTCG =300000
TAX ON IT @20% =60000

TOTAL TAX PAYABLE=60000+5500=65500
exemption first given from stcg and then from ltcg if i am wrong then plz dont hesitate to correct me thanx....

18 July 2008 REPLY HAS BEEN MODIFIED


18 July 2008 REVISED REPLY BY MOHINDER KANSAL AS LONG TERM CAPITAL GAINS WAS TREATED AS EXEMPT

LTCG U/S 112 RS. 300000/-
TAX ON LTCG RS. 31000/- (i.e., 20% ON RS. 300000-145000)

SHORT TERM CAPITAL GAIN RS. 300000/-

TAX @ 10% RS. 30000/-

TOTAL TAX PAYABLE 62000/- + EDUCATION CESS

NO DEDUCTION U/S 80C WILL BE AVAILABLE

18 July 2008 Mr. Mohinder Kansal

Thanks for your advice.

Are you sure that we will get benefit of basic exemption of Rs. 145000/-?

Secondly whether reducing basic exemption of Rs. 145000/- from long term capital gains instead of short term capital gains is correct?
Please clarify it.

Thanks

18 June 2023 "Sorry, I am not a featured member."

For featured members contact....

https://www.caclubindia.com/catalogue/featured.asp



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries