Marginal Relief Calculations for FY 2008-09
This query is : Resolved
18 July 2011
Mr. XYZ senior citizen having Capital Gain income & Other Income for A.Y. 2009-10. His income other than Capital Gain is below Basic Slab Rate of 225000/- i.e. Rs.170000 but his Long Term Capital Gain is Rs. 838000/- so his total income is 10,08,000/-. So is he eligible for Marginal Relief for the Assessment Year 2009-10??
Please explain the Taxability of XYZ
Please explain the Taxability of XYZ
21 July 2011
Due to marginal relief the assessee's liability remains limited to the income
exceeding Rs 1000000/-. It is provided in the case of "tax at normal rate."
In this case tax to be calculated as under -
Tax ay Normal Rate on 225000 NIL
Tax @20% Special Rate on 783000 ...156600
Question of marginal relief is irrelavent in this case.
exceeding Rs 1000000/-. It is provided in the case of "tax at normal rate."
In this case tax to be calculated as under -
Tax ay Normal Rate on 225000 NIL
Tax @20% Special Rate on 783000 ...156600
Question of marginal relief is irrelavent in this case.
24 July 2011
In the modified case, where you have replaced income to 170000/-. For senior citizens I am taking the slab as given by you-
Tax ay Normal Rate on 225000 NIL
Tax @20% Special Rate on Balance Income
(1008000-225000=783000)783000 ...156600
Whatever is shortfall in Basic limit, has to be recouped with the LTCG. Consequently LTCG amount will be reduced by the amount, which has been utilised for the purpose of covering the " Basic limit Shortfall".
Tax ay Normal Rate on 225000 NIL
Tax @20% Special Rate on Balance Income
(1008000-225000=783000)783000 ...156600
Whatever is shortfall in Basic limit, has to be recouped with the LTCG. Consequently LTCG amount will be reduced by the amount, which has been utilised for the purpose of covering the " Basic limit Shortfall".
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- PAN Migration to New AO
- Tax implications of gift to maternal uncle
- How to open attachment in 23ac xbrl
- 26QB correction - no data available error for fully consumed/processed with default
- Capital gains LTCG
- Input Tax Credit Puf panels
- Gifts in cash
- Demand due to error in 3cd
- TDS on Purchase of Immovable Property in case of Co Owner
- 140-A Tax Wrongly Paid PAN No
- Indemnity Bond Format for Excess TDS on rent refund
- AS-16 Treatment of Borrowing cost for land and building
- Why TDS receivable entry made at the date of bank Received.
- HSN WISE SUMMRY REPORTING IN GSTR-1
- Tds rate on loan given to a firm from personal file
- Excess TDS Paid_Form 26QC
- TDS ON PAYMENT TO NON-RESIDENT BY RESIDENT FOREIGN ENTITY
- HOW TO CALCULATE FOOD CHARGES
- Travel Agent Charges 5 GST without ITC. Can he raise invoice18 on Service Fee for Flight Tick
- Income tax planning
Trending Online Classes
-
Certification Course on GSTR-3B Reconciliation with GSTR-2B through Chat GPT
CA Deepak Gupta26 April 2025
CAclubindia
