Rajib Saha (Accounts Officer) (239 Points)
19 October 2021Sir/Madam,
An Assesee earned Long Term Capital Gain of Rs. 2,74,000/- ( subject to STT) on sale of "UTI Healthcare Fund (G) [ ISIN : INF789F01695]" . He has other Income totaling to Rs. 3,57,000/- . How his Tax Payable will be calculated?
May kindly guide me.
Vikram Bansal
(Accountant, Manager)
(6 Points)
Replied 19 October 2021
Income tax payable is a type of account in the current liabilities section of a company's balance sheet. It is compiled of taxes due to the government within one year. The calculation of income tax payable is according to the prevailing tax law in the company's home country.
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 19 October 2021
Sonal Agarwal
(Chartered Accountant)
(41 Points)
Replied 20 October 2021
COMPUTATION OF TOTAL INCOME AND TAX PAYABLE THEREON FOR THE AY 2021 – 22
|
INCOME FROM CAPITAL GAIN |
|
|
Long Term Capital Gain u/s 112A |
|
|
On sale of units of Mutual Fund |
274000 |
|
|
|
|
Other Income (assuming no income which is taxed at special rate) |
357000 |
|
GROSS TOTAL INCOME |
631000 |
|
Less : Deduction under chapter VIA (assumed) |
NIL |
|
TOTAL INCOME |
631000 |
|
|
|
|
Special Tax on LTCG of Rs.174000/- @ 10% (after considering threshold deduction of Rs.100000/-) |
17400 |
|
Tax on Balance Income of Rs.357000/- (assuming age below 60 years) |
5350 |
|
|
22750 |
|
Add : Health & Education Cess @ 4% |
910 |
|
TAX PAYABLE |
23660 |
This is the calculation of tax without considering TDS, Advance Tax and Interest and based on certain assumptions.
I hope it would be helpful for you.
If you have any query after this, please reply.
Thank You
Rajib Saha
(Accounts Officer)
(239 Points)
Replied 20 October 2021
Thank you, Sir, for the detailed calculation. My question is : if LTCG is taxed separately, can't he get benefit u/s 87A?
Sonal Agarwal
(Chartered Accountant)
(41 Points)
Replied 21 October 2021
Section 112A(6) states that "Where the total income of an assessee includes any long-term capital gains referred to in sub-section (1), the rebate under section 87A shall be allowed from the income-tax on the total income as reduced by tax payable on such capital gains."
Sir, therefore rebate u/s 87A is not available against LTCG income u/s 112A.
Hope your query is resolved!!
Rajib Saha
(Accounts Officer)
(239 Points)
Replied 21 October 2021
Thanks a lot for your prompt reply. It will really help me.
CAclubindia
