Tax computation
This query is : Resolved
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
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
04 March 2012
sir
congrats u have no tax liability regarding this.
your tax computation is as under
Income from Annuity Pension : 62000/-
Income from FD Interest : 76000/-
Income from Capital Gain (Long Term): 58230/-
Total :196230/- (including Capital Gain)
and its totally exempt.
congrats u have no tax liability regarding this.
your tax computation is as under
Income from Annuity Pension : 62000/-
Income from FD Interest : 76000/-
Income from Capital Gain (Long Term): 58230/-
Total :196230/- (including Capital Gain)
and its totally exempt.
Message likes :
1 times
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)
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)
Message likes :
1 times
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
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.
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
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.
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
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
Correctly noted by you. kochar.prakash@yahoo.com
09 March 2012
Dear Mr.Prakash Kochar,
Thanks for your excelant feed back/ information and further hats off to your quick responce.
Wishes,
Parthasarathy
Thanks for your excelant feed back/ information and further hats off to your quick responce.
Wishes,
Parthasarathy
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