10 October 2013
An Assessee has: - (i) Interest Income from FD - Rs. 220000 (ii) Income from Brokerage - Rs. 45000 (iii) Short Term Capital Gain - Rs. 90000
10 October 2013
If the Short term capital gain is taxable under special rate then your income is as follows
Taxable income at normal rate Rs.2,65,000(2,20,000+45,000)-Rs.90,000 = Rs.1,75,000.
Taxable income at special rate is Rs. 90,000
Basic exemption limit for A.Y 2013-14 for Individual(non-senior citizen) is Rs.2,00,000.
So your taxable income at normal rate is Rs.1,75,000 only means you have Rs.25,000 gap this gap can be adjust with the short term capital and on then balance amount of Rs.65,000 on this amount calculate tax at special rate.
In case short term capital gain is taxable at normal rates then your taxable income is Rs.2,65,000(2,20,000+45,000+90,000-90,000) and pay tax on Rs.65,000 at normal rates.
15 October 2013
I forgot to clarify that the Short Term Gain is on Shares , so it is taxable at Special Rate of 15 % . So, then , how will the Income Tax be calculated ?
CAclubindia
