Calculate Tax Please

Page no : 2

CA. Megha Topiwala (Job) (1534 Points)
Replied 26 October 2009

It is provided under income tax act that deductions u/s 80C to 80U is not available on STCG and LTCG.... bt if the assess is resident in india then he can avail the benefit of maximum exemption limit.... (i.e. 1,50,000 in your case) even from LTCG and STCG.... bt the same is not available to Non residents......

hence the following steps are 2 b followed :

(1) from gross total income deduct LTCG n STCG

(2) Deduct deductions u/s 80C to 80U... from the balace of above...

(3) Deduct the maximum exemption limit from the above and then calculate tax as per prescribed rates and slabs ...

(4) even after deducting 80C to 80U your income is less than exemption limit then the balance is to b deducted from the STCG or LTCG....

(5) hence the balance will b taxable at the given rate of 111A @ 15% or LTCG @ 20%....

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CA Inderdeep Singh (CHARTERED ACCOUNTANT) (103 Points)
Replied 27 October 2009

as per my view nothing is taxable

because there is relief which is avialable to only resident individual and HUF

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 27 October 2009

hi brother if 80C is allowable, then there is no taxable income in F.Y. 08-09 even as it goes in this way:-

150000-(98000-8000) = 60000... and all of such benefit will be consumed by STCG of Rs. 60000... so no tax...

and if at all deduction is not allowable then also Rs. 8000 of STCG are chargeable at a flat rate of 15% + E.C of 3%..

CA Umashankar Vaishnav (Service in Cement Manufacturing Organization) (1069 Points)
Replied 27 October 2009


Salary Income : 98000/-

STCG: 60000/-

Deducn under 80c= 8000/-

wiil he be Liable to pay tax under A.Y.2009-10?

(b) what will be ur Tax amt If there is NO deducn u/s 80c is available?

Pls advice with tax calculation if possible, sm1 says STCG is
taxable at flat rate irrespective of Slab rates?


Solution : Since the income other than short term capital gain is less than
	the exemption slab limit si it may be eligible for an exeption ( Relief )

	Exemption limit - ( Net Income - Short term Capital Gain )

	Here, We have assumed that our assessee is not a senior ciziten and a resident women .
	So, Slab rates of Rs. 150000 / - will be apply
	Also, STCG comes u/s 111A ( Tax Rate Being 15%)
	Now,
	Salary Income ( 98000-8000)	90000
	STCG	60000
	Net Income	150000

	Now
	Exemption limit - ( Net Income - Short term Capital Gain )

	150000-(150000-60000)	=	60000	( Exemption)

	Therefore, STCG chargable to tax will be Rs.( 60000-60000) = Nil

	Tax on STCG equals to ( Rs.Nil x 15% )			=	Nil

	Tax on other Income Equal to ( Rs. 98000-8000(80c) )			=	Nil

	Total Tax Before Surcharce & EC & SHEC			=	Nil

Add	Surcharge @ 10%				N.A.

Add	EC & SHEC( 1% + 2% ) 3%				Nil

	Total Net Tax Liability				Nil

CA Umashankar Vaishnav (Service in Cement Manufacturing Organization) (1069 Points)
Replied 27 October 2009


Salary Income : 98000/-

STCG: 60000/-

Deducn under 80c= 8000/-

wiil he be Liable to pay tax under A.Y.2009-10?

(b) what will be ur Tax amt If there is NO deducn u/s 80c is available?

Pls advice with tax calculation if possible, sm1 says STCG is
taxable at flat rate irrespective of Slab rates?


Solution : Since the income other than short term capital gain is less than
	the exemption slab limit si it may be eligible for an exeption ( Relief )

	Exemption limit - ( Net Income - Short term Capital Gain )

	Here, We have assumed that our assessee is not a senior ciziten and a resident women .
	So, Slab rates of Rs. 150000 / - will be apply
	Also, STCG comes u/s 111A ( Tax Rate Being 15%)
	Now,
	Salary Income ( 98000-8000)	90000
	STCG	60000
	Net Income	150000

	Now
	Exemption limit - ( Net Income - Short term Capital Gain )

	150000-(150000-60000)	=	60000	( Exemption)

	Therefore, STCG chargable to tax will be Rs.( 60000-60000) = Nil

	Tax on STCG equals to ( Rs.Nil x 15% )			=	Nil

	Tax on other Income Equal to ( Rs. 98000-8000(80c) )			=	Nil

	Total Tax Before Surcharce & EC & SHEC			=	Nil

Add	Surcharge @ 10%				N.A.

Add	EC & SHEC( 1% + 2% ) 3%				Nil

	Total Net Tax Liability				Nil