Mr.A aged 45 having Taxable income of 3,80,000 in Py 2020-21. He purchased land with the above income in the same PY. He didn't file ROI as his net tax liability was nil by claiming rebate u/s 87A.
In Py 2021-22 He is having Taxable income 7,20,000 by doing job. In Py 2021-22 he sold that land for 4,50,000 and resultant STCG is 70,000. What is the tax liability for PY 21-22.
9 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 19 March 2021
Whether there is any deductions?
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 19 March 2021
Yes rebate will be available of 12,500 rupees but tax liability is coming for 10,400 rupees
kalkish pasumarthi
(23 Points)
Replied 20 March 2021
Tax liability Rs.10,400 is for STCG???
As net tax liability is below 5lakhs then tax liability will be Nil by claiming rebate. am I correct???
As net tax liability is below 5lakhs then tax liability will be Nil by claiming rebate. am I correct???
CA. Sourav Sarkar
(Chartered Accountant )
(24588 Points)
Replied 20 March 2021
No no, Actually you have STCG which is taxable @ 15% .
720000 rupees from salaries. Standard deduction of 50000 rupees should be deducted.
you will get rebate of 12500 rupees.
Your capital gain tax is 10500 rupees and tax on normal income is 6000 rupees.
So total tax liability is 16500 rupees from that rebate of 12500 rupees should be deducted means 4000 rupees plus cess @ 4%. So total tax liability will be 4160 rupees
720000 rupees from salaries. Standard deduction of 50000 rupees should be deducted.
you will get rebate of 12500 rupees.
Your capital gain tax is 10500 rupees and tax on normal income is 6000 rupees.
So total tax liability is 16500 rupees from that rebate of 12500 rupees should be deducted means 4000 rupees plus cess @ 4%. So total tax liability will be 4160 rupees
anil jain
(Partner)
(1072 Points)
Replied 21 March 2021
Pl read
Rebate of income-tax in case of certain individuals.
87A. An assessee, being an individual resident in India, whose total income does not exceed [five hundred thousand] rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of [twelve thousand and five hundred] rupees, whichever is less.
Therefore 87A rebate is not allowed in the instant case.
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