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Tax Calculation

CA Pramod Jain (manager finance) (1577 Points)

07 January 2010

if a individual (male and not sr citizen) is having income of rs.159000/- which includes shortterm capital gain rs.30000/- then what will be the tax for fy2009-10.

and in another case if a individual (male and not sr.citizen) is having income of 171000/- including shortterm capital gain rs.30000/- and also invested rs.12000/- u/s 80 c then what will be the tax for fy2009-10.

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15 Replies

Amir (Learner) (4016 Points)
Replied 07 January 2010

Dear Pramod,

ANSWER WILL DEPEND UPON THE STATUS OF THE INDIVIDUAL

CASE 1 RESIDENT

a) 1,59,000 - The Tax will be NIL

b) 1,71,000 - Answer is same as above

CASE 2 NON RESIDENT

a) 1,59,000 - Tax will be 4500+Education Cess

b) 1,71,000 - Answer is same as above

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CA Pramod Jain (manager finance) (1577 Points)
Replied 07 January 2010

amir just clarify one thing for fy 2009-10 threshhold exemption limit is 160000/- and short term capital gain tax is 15% then how the tax will come to 900/- in case of resident pl calrify in case of resident status.

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 07 January 2010

Hi pramod, in first case taxability is nill

Hi, i clarified, deduction is not available for STCG here in second case, so taxability will be on 11000 as per STCG only....

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 07 January 2010

And for NRI person..., there will be no excess exemtion benefit available to the assessee....

So, 30000 of STCG will be taxable completely

CA Pramod Jain (manager finance) (1577 Points)
Replied 07 January 2010

dhiraj thanks for the reply

pl clarify one more thing from stcg income we can deduct thrashold basic exemption limit available but cann't take deduction under chapter via, am i right or not ?

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CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 07 January 2010

Hi pramod, i think 80C deduction is available, let me just refer some notes and answering this again in few moments...

Amir (Learner) (4016 Points)
Replied 07 January 2010

Dear Pramod,

U R RITE, SORRY BROTHER I MADE CACULATION ON THE BASIS OF A/Y 2009-10

YES FOR RESIDENTS INDIVIDUALS & HUF'S STCG u/s 111A CAN BE DEDUCTED FROM EXEMPTION LIMIT BUT ONLY AFTER ALL OTHER INCOMES..AND DEDUCTIONS under Chapter VI A is not allowed for LTCG & STCG u/s 111A

Amir (Learner) (4016 Points)
Replied 07 January 2010

Deduction for STCG OTHER THAN 111 A IS AVAILABLE...

SHARES / MF's on which STT HAS BEEN PAID - 111A

Avinash Mishra (CA Final Group-2) (50 Points)
Replied 07 January 2010

Originally posted by : CA Pramod Jain
	if a individual (male and not sr citizen) is having income of rs.159000/- which includes shortterm capital gain rs.30000/- then what will be the tax for fy2009-10. and in another case if a individual (male and not sr.citizen) is having income of 171000/- including shortterm capital gain rs.30000/- and also invested rs.12000/- u/s 80 c then what will be the tax for fy2009-10.

Avinash Mishra (CA Final Group-2) (50 Points)
Replied 07 January 2010

Originally posted by : CA Pramod Jain
	if a individual (male and not sr citizen) is having income of rs.159000/- which includes shortterm capital gain rs.30000/- then what will be the tax for fy2009-10. and in another case if a individual (male and not sr.citizen) is having income of 171000/- including shortterm capital gain rs.30000/- and also invested rs.12000/- u/s 80 c then what will be the tax for fy2009-10.

see section 111A

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CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 07 January 2010

SECTION 111A :

[Short term capital gain – (Exemption limit – Taxable income as so reduced)]

Such balance amount of short term capital gain is chargeable to tax.

Deduction under chapter VI-A cannot be availed in respect of such short term capital gain included in the total income of the assessee. Deduction under chapter VI-A shall be allowed as if the gross total income as reduced by such short-term capital gain were the gross total income of the assessee.

So, if the above mentioned STCG is falling under 111A then and then only Rs. 11000 (in second case) will be chargeable, othervise deduction is avialable and income tax liability will be nil if its not section 111A

1 Like

CA Amit Kumar (C.A., CWA Final) (251 Points)
Replied 07 January 2010

Tax Calculation in case of a person who is citizen of india (not sr citizen or female)

Case-I, no tax, as the income is less than the threshold limit. (159000<160000)

case-II no tax, as the income is less than the threshold limit. (171000-12000=159000<160000)

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 07 January 2010

Hi, The taxability is NIL in both the cases.

Yes, Deduction underchapter VI A is not available for STCG of 111A .so 80C benefit has to be given on income other than STCG. The amount thus derived shall be deducted from Rs 1,60,000. The balance will be cushion for the STCG setoff from basic exemption limit.

Other income-- 1,41,000 i.e (1,71,000-30,000)

Deduction of 80C --12,000

Balance -- 1,41,000-12,000= 1,29,000

now , 1,60,000-1,29,000= 31,000 will be available as STCG cushion.

so, Rs, 30,000/- will not be taxed.

Jagdish Bhalia (Practicing CA) (453 Points)
Replied 07 January 2010

Deduction u/s 80C is available on STCG Except u/s 111A (If STCG generated on transfer of equity shares or units in equity-oreinted mutual fund than deduction u/s 80C will not be available)