income tax calcutation

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Guest

Guest (Querist)

07 January 2010 please calculate income tax

income from business 140000.00
L.T.C.G. 50000.00

sanjeev agarwal nainitl

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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07 January 2010 Tax 6000 +180 cess = 6810
Rs. [(140000+50000)-160000]* 20% + 3%

Assumption
1. Person is resident individual aged below 65 years.
2. LTCG is not exempt u/s 10(38).
3. A.Y. is 2010-11.

Pawan Periwal

Pawan Periwal (Expert)
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08 January 2010
In my opinion reply of Manmohan is incorrect.

150000(Non taxable bar)-140000(business income)=10000 be set off against Rs 50000 of LTCG. So the LTCG be Rs 40000 on which Tax @ 20% plus 3%

Assumption
1. Person is resident individual aged below 65 years.
2. LTCG is not exempt u/s 10(38)
3. AY is 09-10 and if AY is 10-11, then LTCG be Rs 30000 on which Tax @ 20% plus 3%

Thanks and Regards
Pawan

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CA Manasa

CA Manasa (Expert)
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08 January 2010 Mr Pawan

Firstly its not Longterm Capital Loss to Setoff and Secondly Long term Capital Loss cannot be Setoff against Business Income.

So I think Manmohan is right

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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08 January 2010 agree with manmohan.

CA Sidhi Gaur

CA Sidhi Gaur (Expert)
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08 January 2010 Mr.Pawan is absolutely correct in caculating the tax.LTCG can be shifted to the residual amount not chargeable to tax in case of a resident(assessment year 09-10)..thus out of Rs.50000 LTCG Rs.10000 can be shifted to take benefit of max amount not chargeable to tax..