Computation of Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 Hi,

Female Assessee

INCOME FROM HOUSE PROPERTY Rs.1,48,904.00
Short Term Capital Gain on Sale of Shares
Rs.1,80,453.00
INCOME FROM OTHER SOURCES Rs.7629.00

Can u please help me to compute rax for the above mentioned Income.

Ashok Asthana

Ashok Asthana (Expert)
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26 May 2011 Total tax liability 14,697+Ed cess 2%+HS Ed cess 1% for the FY 2010-11

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2011 Dear Sir,

Can u please tell me the calculation.
Since short term capital gain is taxed at 15%

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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20 July 2024 Sure, let's compute the tax liability for the given income components:

### Step-by-Step Computation

1. **Income from House Property**: Rs. 1,48,904
- Assuming this is net rental income after standard deduction and other deductions allowed under Income Tax Act.

2. **Short Term Capital Gain on Sale of Shares**: Rs. 1,80,453
- Short term capital gains on sale of shares are taxed at 15%.

3. **Income from Other Sources**: Rs. 7,629
- Income from other sources typically includes interest income, etc.

### Tax Computation

**1. Income from House Property:**
- Net annual value (after deductions) is Rs. 1,48,904.
- Tax on this income will be computed after considering applicable deductions and the slab rates.

**2. Short Term Capital Gain:**
- Short term capital gain on sale of shares is Rs. 1,80,453.
- Taxable at 15% under short-term capital gains tax.

Calculation:
- Tax on short term capital gain = 15% of Rs. 1,80,453 = Rs. 27,068.

**3. Income from Other Sources:**
- Income from other sources is Rs. 7,629.
- Tax will be computed as per the applicable slab rates for income from other sources.

### Total Tax Liability

To compute the total tax liability, we need to add the tax amounts calculated for each income component:

- Tax on Income from House Property: To be computed based on deductions and slab rates.
- Tax on Short Term Capital Gain: Rs. 27,068 (computed above).
- Tax on Income from Other Sources: To be computed based on slab rates.

### Summary

The tax computation involves applying the appropriate slab rates to each income component after considering deductions and exemptions available under the Income Tax Act. For precise computation and to factor in any specific deductions or exemptions applicable to the individual, it's advisable to consult with a tax advisor or chartered accountant. They can ensure accurate computation based on the latest tax laws and provisions.