Compute tax liability of ABC Ltd. a domestic company in the following situations:
(a) The company has long term capital gains of `200,00,000.
SOLUTION:-
Computation of Tax Liability
Income under the head Capital Gains (long term capital gains) 200,00,000
Total Income 200,00,000
Tax on `200,00,000 @ 20% 40,00,000
Add: Surcharge @ 5% 2,00,000
Add: Education cess @ 2% 84,000
Add: SHEC @ 1% 42,000
Tax Liability 43,26,000
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Computation of Tax Liability
Income under the head Capital Gains (long term capital gains) 200,00,000
Total Income 200,00,000
Tax on `200,00,000 @ 20% 40,00,000
Add: Surcharge @ 5% 2,00,000
Add: Education cess @ 2% 80,000
Add: SHEC @ 1% 40,000
Tax Liability 43,20,000
From Above solutions I want to know which one is the correct answer.
So please help
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