Mr. X is Having Income from other sources rs. 20000, Short term Capital gain is rs. 325000( sec 111A)....now my question is what is the tax liability of mr. x in this case? for F.Y 2009-10..read with relief of sec. 111A.....plz help me...bcoz i m very confused abt tht relief....thanks in advance...
12 Replies
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 25 April 2010
Relief u/s 111A says Exemption limit - ( Taxable income - Short term Capital Gain)....in your case ther amont comes under releif is rs. 140000 so now,
Your Taxable income from STCG is Rs. 185000,
out of Rs. 185000 Rs. 140000 will be taxable @ 10%( This is bcoz your GTI is exceeding Rs. 3lakhs)
and balance i.e Rs. 45000 will be taxable @ 15%
so your tax liability is. 14000+6750=20750
Add: Ed Cess+HEC @ 3% 623
Your Tax Liability = 21370( Rounded off)...
Seniours plz correct me if i m wrong...Thank you.....
Shamika
(Article)
(44 Points)
Replied 25 April 2010
Ya Rohit.. i knw it is taxable @ 15%.. but i'm asking about relief??..in the book it is given tht under relief it is taxable @ 10% to the extent basic exemption limit.........ya punit even i think your answers is correct man...but we both are confuse na tht wht is d correct answer...plz seniors help us in this doubt....
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 25 April 2010
| Originally posted by : Rohit Kapoor | ||
 |
I dont agree with u...in the above question other source income will be taxable @ 30percent and stcg 185000 will be taxable @ 15 percent |
 |
Rohit how come income from other sources is taxable @ 30%?? gti is rs.345000 and 30% is rate is above 5lakhs...except income from winning from lotteris and speculative profit of horse race......
Max Payne
(employed)
(2574 Points)
Replied 25 April 2010
| Originally posted by : Shamika | ||
|
Mr. X is Having Income from other sources rs. 20000, Short term Capital gain is rs. 325000( sec 111A)....now my question is what is the tax liability of mr. x in this case? for F.Y 2009-10..read with relief of sec. 111A.....plz help me...bcoz i m very confused abt tht relief....thanks in advance... | |
In this case, assuming that Gross Total Income = total income
Total Income = 325,000+20,000 = 345,000/-
Assuming Mr X is a resident for the Financial Year, he is eligible to adjust the unexhausted basic exemption limit against the STCG u/s 111A
In this case, Other income = 20,000
Adjustment of STCG against unexhausted Basic exemption limit = 140,000
Balance STCG taxable @ 15% = 345,000-140,000 = 185,000
Tax on above = 27,750
Add 2% Education cess = 555
Add 1% Secondary and Higher education cess = 277.5
Total tax and cess payable = 28,582.5
Rounded off u/s 288B = 28,580.0
And the book does not appear correct.
because in the act, the proviso for "relief'" has been marked with an (*) and the footnote says
The words "ten percent" need be substituted with the words "fifteen percent"
Even though the Finance bill of 2008 missed it, the rate for residents covered by the proviso is also 15%. 10% was the earlier rate.
Sanjay Arora
( )
(53 Points)
Replied 25 April 2010
| Originally posted by : G.K. | ||
|
|
Originally posted by : Shamika Mr. X is Having Income from other sources rs. 20000, Short term Capital gain is rs. 325000( sec 111A)....now my question is what is the tax liability of mr. x in this case? for F.Y 2009-10..read with relief of sec. 111A.....plz help me...bcoz i m very confused abt tht relief....thanks in advance... In this case, assuming that Gross Total Income = total income Total Income = 325,000+20,000 = 345,000/- Assuming Mr X is a resident for the Financial Year, he is eligible to adjust the unexhausted basic exemption limit against the STCG u/s 111A In this case, Other income = 20,000 Adjustment of STCG against unexhausted Basic exemption limit = 140,000 Balance STCG taxable @ 15% = 345,000-140,000 = 185,000 Tax on above = 27,750 Add 2% Education cess = 555 Add 1% Secondary and Higher education cess = 277.5 Total tax and cess payable = 28,582.5 Rounded off u/s 288B = 28,580.0 And the book does not appear correct. because in the act, the proviso for "relief'" has been marked with an (*) and the footnote says The words "ten percent" need be substituted with the words "fifteen percent" Even though the Finance bill of 2008 missed it, the rate for residents covered by the proviso is also 15%. 10% was the earlier rate. |
|
totally agree tax liablity comes Rs. 28580 /-
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 25 April 2010
Mr. G.K thanks for your reply...
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 26 April 2010
areh no rohit....in the taxation book of mr. singhania...it is written as 10% if u take the relief....and we have a book of A.Y 2010-11 with the amendments...and overthere specificaly written at it is not taxable @ 15%....we r still confused abt tht answer...if u have tht book then check it out....thanks
CA Punit GoSwaMi
(Chartered Accountant)
(310 Points)
Replied 26 April 2010
no i request you to visit this forum.. and see tht calculation overthr...and thats y we r confused...and see overthr everyone have said tht calculation of bhavin bhadra is correct...so just check it tht and now see this problem...
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