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Doubt in Tax

CA ADITYA ZANTYE (BCOM CA CS PROFESSIONAL) (325 Points)

24 April 2011

LTCG(OTHERS)=180000

STCG(STT PD)=170000

AND

THE ASSESSEE IS A SENIOR CITIZEN. THEN WHAT WILL BE TAX CALCULATION FOR A.y2011-12

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4 Replies

Deepak Bhardwaj (ACS, LLB & CA Finalist) (132 Points)
Replied 24 April 2011

While calculating GTI take all incomes whether LTCG,STCG and other incomes if any. But do care of few things while calculating tax liability.

Charge tax liability on LTCG @ 20% separately

STCG if u/s 111A then charge tax @ 15%, else include it in total income and apply slab.

now you can calculate tax liablity by applying that particular PY slab.

** Dont forget to take the benefit of Shifting while computing your tax liability**

Deepak Bhardwaj

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 25 April 2011

Originally posted by : aditya
	LTCG(OTHERS)=180000 (after index benefit ) 1.8*20% = 36000/- STCG(STT PD)=170000 = 15% flat = 25500 OTHER INCOME=240000 = NIL AND THE ASSESSEE IS A SENIOR CITIZEN. THEN WHAT WILL BE TAX CALCULATION?

Total Tax liability = 36000+25500 = 61500

mahesh (Will soon be a CA !) (168 Points)
Replied 25 April 2011

As ur saying STT pd on STCG , it represents exumpt income. As far as LTCG is concerned.. if the assessee is having no other income , then his basic exumption limit i.e. 240K should be utilised and therefore he will have no tax.( 180K-240K = -6K)

Alok Siddapur (Consultant) (229 Points)
Replied 26 April 2011

If the assessee has other income then check whether the same is below maximum exemption limit. If yes, then first deduct LTCG from the remaining amount of exemption limit.