An assessee has income from salaries, house property, other sources, short term capital gains and long term capital gains. When calculating income tax whether incomes from salaries, house property and other sources are arrived at separately and income tax at 15% on short term capital gains separately and 10% on long term capital gains over 1 lac separately and arrive the total of 3 taxes and add cess of 4% on the total tax payable. To illustrate I give below the statement as under:
Tax on Salaries, House property, Income from other sources. : A
Less various deductions under. B
Chapter VI & other deductions
Income tax payable. C
15% tax on Short term capital
gains. D
10% tax on Long term capital
gains. E
Total tax payable : C+D+E. F
CESS @ 4%. G
GROSS TAX PAYABLE : F+G. H
Please clarify the correct method of calculation.
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