NASM13 (Article Clerk) (63 Points)
30 July 2010Hey frens
I have a query. Suppose if an assesse only has tution income of 18000 and STCG (ref u/s 111A) of 89000 during FY 09-10. Saving bank interest of 800. What will be tha tax for the AY 10-11.
I am confused. Will it be NIL or a flat rate of 15% even if it falls below the taxable limits.
Kindly help. Thanks in advance.
Regards
Anil Kumar
(looking for the best avenue)
(303 Points)
Replied 30 July 2010
since total income is less than taxable limit ,no tax arises at all,neither 15% nor 10%.
Vishal Jain A
(Practicing CA)
(941 Points)
Replied 30 July 2010
Hi dear friend,
there will be no tax if the assesse is Resident as slab benefit will be given to him u/s 111A.. But if the same case is of non-resident, STCG will be taxed at 15% as slab benefit is not available to N-R...
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
Thnx a lot.. Thanx a lot.. Thanx a lot.. can some one confirm vishal jain's answer.. I have two cases having a similar situation.. one Non resident and other resident... some pls confirm it.. I have to file two returns..
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
By non Resident you mean the assesee must have stayed more dan 182 days? or an NRI?
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
WAITING FOR THE REPLY.. SOME ONE SHED SOME LIGHT..
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
PLS LEMME KNOW IF TUTION FEES PAID OF ONES CHILD GOING IN NURSERY .. CAN ONE CLAIM DEDUCTION???
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 30 July 2010
HI NAVEED,
IF U'R TAXABLE INCOME OTHER THAN STCG U/S 111A IS LESS THAN EXEMPTION LIMIT I.E. RS.160,000 (FOR AY 2010-2011), THEN U CAN CLAIM THE EXEMPTION BY THE PROVISO TO THE SECTION 111A.
THIS EXEMPTION IS LIMITED TO THE DIFFERENCE BETWEEN 160,000 - TAXABLE INCOME OTHER THAN STCG.
IF U'R STCG IS LESS OR EQUAL TO MAX. EXEMPTION AMOUNT ALLOWED9AS PER ABOVE), THEN NOTHING WOULD BE TAXABLE. IF IT EXCEED, THEN SUCH EXCESS WOULD BE CHARGEABLE FOR FLAT RATE @ 15% AND AGAINST THIS NO DEDUCTION U/S 80C TO 80U WOULD BE ALLOWED.
ONE IMPORTANT POINT TO BE MANTIONED HERE IS THAT, PROVISO TO SEC 111A IS AVAILABLE ONLY FOR RESIDENT INDIVIDUAL AND RESIDENT HUF. THUS, A NON RESIDENT WOULD NOT GET THE BENEFIT OF THIS SECTION AND CHARGEABLE TO THE STCG TAX ON FULL STCG.
IN CASE OF MUTUAL FUND EARNED STCG, THE SAME IS EXEMPT U/S 10(23D0 OF THE INCOME TAX ACT. ONLY THE DIVIDEND DISTRIBUTED TO UNITHOLDERS WOULD ATTRACT THE TAX IN CASE OF MUTUAL FUND.
HOPE THIS SOLVES ALL QUERIES.
REGARDS,
MANOJ
Mayur Arora
(CA Final)
(295 Points)
Replied 30 July 2010
thanks Manoj for giving a brief view on the matter
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
Thnx Manoj.
Can some one confirm if a childs nuresry school fees is an allowable deduction u/s 80C..
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 30 July 2010
YES IT IS DEDUCTION IS ALLOWED ONLY FOR TUTION FEES UNDER SEC 80C AND ONLY IF IT IS PAID BY ASSESSEE.
REGARDS,
MANOJ
Sumit Jain
(CA)
(4760 Points)
Replied 30 July 2010
no tax
minimum exemption of income will cover that much stcg
so
no tax
NASM13
(Article Clerk)
(63 Points)
Replied 30 July 2010
Thnx a lot Manoj..
Was really impressed by the way you answered the query.. upto the point.. and have resolved all my doubts.. also have instilled a bit of confidence.. i am sure i have got the right answer..
thnx once again.. best of luck for the future..
regards,,.
CAclubindia
