umashankar vaishnav (Accounts Dept. Shree Cement - SAP S/4 Hana FICO) (1069 Points)
18 February 2010SUPPOSE MR. A AGE 26 HAS LTCG FROM SALE OF LAND COMES TO RS 650000 /-. DURING THE FINANCIAL YEAR 2009-10.
PLZ DETERMINE THE TAX LIABILITY OF MR. A FOR THE FINANCIAL YEAR 2009-10.
ANS. a) 650000 X 20.60 = 133900
ANS. B) 650000-160000 X 20.60 = 100940
WHICH ONE IS CORRECT (a) OR (b)
Divya K S
(CA)
(289 Points)
Replied 18 February 2010
Hi Umashankar,
First of all, Education Cess & Surcharge are not applicable to normal slab rates as well as special rates like STCG, LTCG. So, the % to be applied is 20.
The second option is right. The cost of acquisition must be reduced from the Gross sale proceeds & then tax must be calculated on the balance (capital gains). Further, since it is LTCG, cost of indexation must be calculated for obtaining the correct cost of acquisition.
what hero where is the acquistion cost
why u are are tempting to pay that much tax
u can claim expenditure for acquistion cost ot the land and
by taking indexation u can increase the value of acquistion by indexation( actually to the current prices)
and later caluculate the capital gain
i for got to ask when did u purchase the land
if it is more than 36 months old then it can be clamed as ltcg in which we can work out indexation
and if less than 36 month then stcg should be worked out and i think that the indexcation is not applicable
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 18 February 2010
See friend I hope the question says LTCG is 650000 and not sale proceeds..Regarding the options i guess there are 2 things to consider
1. the residential status of Mr.A..only resident individuals can claim the unexhausted basic exemp from LTCG
2.Other incomes of Mr.A..If he doesnt have any other income taxed at normal rates then only the basic exemption can be claimed from the LTCG
After considering both this go for option A r B
I hope am right
CA Sultan.........never quits
(Financial Controller)
(511 Points)
Replied 18 February 2010
Hi,
Hareesh is correct and agree with him
Rknahar
(Rupesh Kumar Nahar)
(85 Points)
Replied 18 February 2010
hiii dear,
As per proviso to section112(1)(a) gives a relief for the exemption amount if any individual have no other income or income less than exemption limit,so option B) 650000-160000 X 20.60 = 100940 is correct
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 18 February 2010
option (B)
because basic exemption is available from LTCG & STCG..
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
Yes Option B....
assuming that he does not have any other income...
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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