arizabdul (accountant) (64 Points)
17 March 2011Friends please let me clarify whether Chapter VIA deduction is available on LTCG when the assesee has no other income in other heads.
"I saw different calculation in two software 1)Winman and 2)Finotax
Please clarify it....
Pankaj Arora
(Learner)
(3134 Points)
Replied 17 March 2011
Yes it will be available…. If you have income only from LTCG
Athmaram
(Articled Assistant)
(170 Points)
Replied 18 March 2011
| Originally posted by : Pankaj Arora | ||
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Yes it will be available…. If you have income only from LTCG |
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I Agree with Pankaj Ji.
arizabdul
(accountant)
(64 Points)
Replied 18 March 2011
Thanks for your replys.
But when i reffered T N Manoharan sirs book,He specifically written that Chapter VIA deduction is not allowed for LTCG.
He said the ACT itself is not allowing that.
But some auther is not agree with Manoharan Sir...
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 18 March 2011
capital gain is not "income"
say u have income of 20000 and chapter VIA deduction(80C) is 35000, Long term capital Gain 30000
then the calculation would go as
gross income 20000
Less ded VIA 35000
max permissible 20000......................... 000 ( decuction can not be more than income of the year)
Long term capital gain ........................30000
threshold limit ......................................160000
Incometax payable NIL
arizabdul
(accountant)
(64 Points)
Replied 18 March 2011
Thank you sir...
That means you are agree with T N Manoharan Sir.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 18 March 2011
DEDUCTIONS UNDER CHAPTER VI-A
6.1 Introduction
The Income Tax Act provides for allowability of certain deductions from the gross total income of the assessee. These deductions are given in Chapter VIA of the Income Tax Act. For the purpose of TDS, the employer/ DDO may allow some of these deductions to the employee on furnishing of the required particulars. The deductions allowable by the DDO/employer are being described .
===============================================================
45. Capital gains.
(1)
Any profits or gains arising from the transfer of a capital asset effected in the previous year shall, save as otherwise provided in section 54,section 54B, section 54D, section 54E, section 54EA, section 54EB,section 54F, section 54G and section 54H, be chargeable to income-tax under the head "Capital gains", and shall be deemed to be the income of the previous year in which the transfer took place.
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U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 18 March 2011
capital gains definition does not satisfy the criteria of INCOME, so VIA does not qualify from capital gains.
Pankaj Arora
(Learner)
(3134 Points)
Replied 21 March 2011
Hey guys will you tell me where its written in chapter VIA deduction is not allowed to LTCG.?
arizabdul
(accountant)
(64 Points)
Replied 22 March 2011
I have not seen anywere that Chapter VIA deduction is not allowed for LTCG.When we go through Section 112 its little bit confusion,its talking about Chapter VIA deduction but its not clear as well.
Pankaj Arora
(Learner)
(3134 Points)
Replied 22 March 2011
yes that is my point so if schedule VIA does not says about LTCG means we can invest schedule VIA and take deduction from LTCG.......?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 22 March 2011
can u add ur LTCG in profits and gains, never, coz the tax treatment is always diff for capital gains, except the threshold limit, capital gains are never taken at par with income.
80C benefits are available with income, not with gains.
Pankaj Arora
(Learner)
(3134 Points)
Replied 22 March 2011
But will you please tell me where its written in income tax act than 80c deduction only available with income not with gains…?
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