chetan (accountant) (321 Points)
09 May 2011hi
One of my client sold a bunglow for Rs 40lacs on 7.5.11 and the cost of acquisition was Rs 33lacs the date of acquisition was 5.5.2009. Please give me the calculation of capital gain and can i get deduction of chapter VI-A.
Other information is Income from other sources is 1.5lacs. and investment under section 80c is 50000/-
please give me calculation of IT under above circumstances.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 09 May 2011
| Originally posted by : chetan | ||
 |
hi One of my client sold a bunglow for Rs 40lacs on 7.5.11 and the cost of acquisition was Rs 33lacs the date of acquisition was 5.5.2009. Please give me the calculation of capital gain and can i get deduction of chapter VI-A. Other information is Income from other sources is 1.5lacs. and investment under section 80c is 50000/- please give me calculation of IT under above circumstances. |
 |
as the matter is taxable in current year. wait for cost inflation incex to get published
in rough calculation its short term capital gain ( below 36 month sale)
as other income is 1.5 lacs he can avail 80C benefit upto 1 lac from other income.
chetan
(accountant)
(321 Points)
Replied 10 May 2011
thank you
then whats the tax Rate for short term capital gain. appx how much i have to pay tax. can you give me brief calculation of this.
and
what is fair market value?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 May 2011
in your case it would be added to your normal taxable income, wait for indexation chart for 2011-12
| Income Level / Slabs | Income Tax Rate | |
|---|---|---|
| i. | Where the total income does not exceed Rs.1,80,000/-. | NIL |
| ii. | Where the total income exceeds Rs.1,80,000/- but does not exceed Rs.5,00,000/-. | 10% of amount by which the total income exceeds Rs. 1,80,000/- |
| iii. | Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-. | Rs. 32,000/- + 20% of the amount by which the total income exceeds Rs.5,00,000/-. |
| iv. | Where the total income exceeds Rs.8,00,000/-. | Rs. 92,000/- + 30% of the amount by which the total income exceeds Rs.8,00,000/-. |
SACHIN garg
(ca )
(181 Points)
Replied 10 May 2011
stcg 700000
other income 150000
Gti 850000
Less 80C 50000
Taxable incme800000
Tax 92000+cess
chetan
(accountant)
(321 Points)
Replied 10 May 2011
why it will go under normal income tax rate there is any rule
Thank you
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 May 2011
assumed Cost inflation index for 2011-12 = 800 (final view will get on notified by incometax)
33*800/632=41.77 lacs
sale proceeds = 40 lacs
short term capital loss 1.77 lacs
Tax = NIL
but this is only assumption, let the CII published
chetan
(accountant)
(321 Points)
Replied 10 May 2011
One more question
i understood your comment thankful to youi
for my knowledge
if short term capital gain is there then caluculation will be as per normal income tax rate? suppose my gain wud be Rs 5 instead of loss 1.77 lacs.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 May 2011
rs 5/- would be get added to your total income, and would be taxed accordingly
no special rate for short term capital gains , ( except shares on which security transaction tax is paid on sales)
Alok Siddapur
(Consultant)
(229 Points)
Replied 10 May 2011
As per section 48 of Income Tax Act Indexation benefit is availabe only in case of transfer of Long Term Capital Asset. Long Term Capital Asset is an Asset which is held for more than 36 months immediately before the date of transfer. Since your client has not held the property for more than 36 months it is Short Term Capital Asset and gain resulting therefrom is Short Term Capital Gain
STCG 700,000 [40-33 No indexation benefit]
IFOS 150,000
GTI 850,000
Less 80C 50,000
800,000
Tax will be 94,760
From next time its better you consult a practicing chartered accountant instead of Manufacturer or Exporter
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 10 May 2011
| Originally posted by : Alok Siddapur | ||
|
|
As per section 48 of Income Tax Act Indexation benefit is availabe only in case of transfer of Long Term Capital Asset. Long Term Capital Asset is an Asset which is held for more than 36 months immediately before the date of transfer. Since your client has not held the property for more than 36 months it is Short Term Capital Asset and gain resulting therefrom is Short Term Capital Gain STCG 700,000 [40-33 No indexation benefit] IFOS 150,000 GTI 850,000 Less 80C 50,000 800,000 Tax will be 94,760 From next time its better you consult a practicing chartered accountant instead of Manufacturer or Exporter |
|
thanks for correction
chetan
(accountant)
(321 Points)
Replied 10 May 2011
hI Friend
The said bunglow got possession in 16.05.2009 and advance had paid in 12.05.2008. so which date i have to take for calculation.
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