03 March 2012
I am aged 61 years.Have purchased a land in March 2002 for RS.120350 including the stamp duty and sold it for Rs.1680000 in April 2011.From the capital gain I purchased a apartment in Auguest 2011 for Rs.1400000 including registration cost. Further I got Rs. 62000/- as annuity pension and Rs.76000/- from FD interest for this year 2011-12.
Kindly let me know the tax.I am a retired person without any income. Regards Parthasarathy
07 March 2012
Above reply is not correct. Calculation of income will be as under- Long term Capital gain will be 1458228/- {1680000- (120350x785/426)} Less : exemption u/s 54 will be (1458228x1400000/1680000) 1215189/- Long Term Capital Gain for Tax- 243039/- (Proportionate capital gain is exempt) Under the conditions given income for tax will be - Int. income ----- 76000 Annuity income -- 62000 LTCG as above -- 243039 TOTAL INCOME 381039 Less:basic exempt. 250000 Balance : 131040 will be liable for tax at flat rate of 20%+ edu. cess. (9850350854)
07 March 2012
Very good feedback.Further I would like to know from Mr.Prakash Kochar that the annuity from LIC like Jeevan Suraksha are exempted by Sec10(10A)(iii) or 23AAB. Regards, Parthasarathy. 9663548010
07 March 2012
REGARDING JEEVAN SURAKSHA :1. Tax Benefits Premium paid upto Rs. 10,000 p.a. is exempted from income-tax as per Section 80 CCC. Similarly Commuted Value of 25% received in one lump sum at the start of the pension is also exempted from Income-tax. However, the amount of monthly Pension as and when received is taxable.
09 March 2012
Dear Mr.Prakash Kochar, Very good input.Finally I would like know, if I can save Rs.100000 thro' sec 80C and Rs.15000/- through Sec. 80D. my tax liability will come down from your calculated tax of Rs.131040. Regards, Parthasarathy
09 March 2012
Your total income inclusive of LTCG is at Rs. 381039/-. Out of this you can not take deduction u/s. sect. 80C, 80D, against Capital Gain. Excluding capital gain your balance income remains at Rs. 138000/-. Out of this you can avail benefit of reduction by investing amount of Rs. 100000/- u/s. 80C, Rs. 20000/- for infrastructure bonds and balance u/d. 80D. Taxable income under head LTCG will be 243039/-, wherefrom you can claim the expenses if any incurred in relation to sale of property like brokerage etc, if any. By availing benefits unmder sect. 80C, 80D, and u/s. 80CCF. (Section 80CCF:additional 20,000/- in addition to limit & invesment of Rs. 100000/-). In this way you can pull down your tax liability to NIL.
09 March 2012
Dear Mr.Prakash Kochar, Wonderful calculation.As per your calculation if I take care of the income other than LTCG ie.138000/- thro'Sec.80. The balance left out LTCG of Rs.243039 is less than the basic exemption of Rs.25000/-As such I need not pay any tax. Regards, Parthasarathy
09 March 2012
Dear Mr.Prakash Kochar, Thanks for your excelant feed back/ information and further hats off to your quick responce. Wishes, Parthasarathy
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