Compute tax liability for the assessment year 2013-14 in the following situations:
(i) Mr. X is resident in India and has income under the head house property `40,000 and income under the head salary `30,000 and long term capital gains `4,80,000.
SOLUTION:-
Computation of Total Income
Income under the head Salary 30,000
Income under the head House Property 40,000
Income under the head Capital Gains (LTCG) 4,80,000
Gross Total Income 5,50,000
Less: Deduction u/s 80C to 80U Nil
Total Income 5,50,000
Computation of Tax Liability
Tax on LTCG `3,50,000 (4,80,000 – 1,30,000) @ 20% u/s 112 70,000
Tax on `70,000 at slab rate Nil
Tax before education cess 70,000
Add: Education cess @ 2% 1,400
Add: SHEC @ 1% 700
Tax Liability 72,100
I want to know how we have calculated 130000.
CAclubindia
