Tax liability

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P.Mishra

Accountant

155 Points Joined July 2010

In the f.y. 2011-12, Income - Rent- 36000 Interest on unsecured loan- 48084 Net profit- 107200 Tds on int- 4808 Agriculture Land sale rs. 1150000 Dt. 25-11-11 which purchase of rs. 916500 Dt. 20-02-09 Asseey is senior citizen What will be overall tax liability create? & capital gain?

Replies (7)

Sanjay Singh Rana

208 Points Joined August 2008

Hi there,

Here is the answere for you query

1. Income from House Property.

Annual Letable Value 36000

Less:Deduction u/s 24

Statutory Deduction of 30% 10800

Property Income From 25200

2. income from business 107200

3. income from other sources 48084

Total Income 180484

Income Tax on above income Nil (within exemption slab

of 250000)

Tax refundable 4808

Note: agricultral land is an exemted capital asset so no capital gain will arise on sale of agricultral land (asumed to be in rural area)

In case of rent it is assumed to be Gross annual value.

Hope it will solve your query

Thanks

P.Mishra

Accountant

155 Points Joined July 2010

Thanks sir... Bt according to section 54 b, capital gain on agriculture land exempt when assessee purchase new agriculture land within 2 years of transfer agriculture land.