K. meharnath (prop) (141 Points)
09 September 2010Hi,
I have an unused basic exemption (after deduction of 1,00,000/- from income from business) of Rs.90000.00. I also have a STT paid STCG of 50000.00 and LTCG out of imm. property = Rs.100000.00. How should I be taxed.
First deduct from STCG or LTCG. Different tax amounts come from either of the cases.
Reply immediately
Vicky
(CA, LCS,MCOM,)
(136 Points)
Replied 10 September 2010
as stt paid short term capital gains are taxed at 15% u/s 111A unlike long term capital gains from sale of imm property which is taxable at 20% u/s 112.,u shd use ur unutilised basic exemption limit first against long term capital gains and balance towards short term gains
Vicky
(CA, LCS,MCOM,)
(136 Points)
Replied 10 September 2010
there is no specific requirement under income tax act abt the priority in which unutilised basic exemption limit can be utilised..accordingly assessee can use his unutilised basic exemption limit as he likes
Member
(Management)
(325 Points)
Replied 11 September 2010
S 112 of the Income Tax Act provides for adding LTCG to the normal income in case normal income is below taxable income. 111A also has a similar provision. Rohit's suggestion is correct.
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