06 October 2010
Respected sir Business Income 150000 STCG U/s 111 A 20000 LTCG ( Without Indexsation) 15000 LTCG (WIth Indexcation) 20000 In this case for taking slab exemption of rs 10000 (that is balances from 160000-150000)In what head of income exemption should be taken. According to my opinion stcg u/s 111 a should be taken for balanced Rs 10000 because tax rate @ 15%. When ever LTCG rate of 10% ( that is benificial for the assessee) As per computex LTCG 20% has been taken.
08 October 2010
Yes, you are right that the assessee can exhaust the balance of basic exemption limit in a way it is advantageous to him. Circular no.721 of 13.09.1995 though issued in the context of beneficial set off procedure, the same approach could be adopted in your case also.
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