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Why incorrect tax calculation case of capital gain itr 3?

Bhawna (Ms.) (123 Points)

27 March 2018

Hi,

I am trying to fill ITR 3 offline utility. As per the law, no deductions u/s 80c to 80u are allowed from Long term capital Gain. But, when I calculate tax, it considers the deductions and because of that, the tax liability comes to zero. However, if deductions are not allowed, then it should include the deductions amount in the Taxable income and calculate tax amount accordingly.

Where am I wrong?

Please find attached the images of "Part B - TI-TTI" of the utility.

Thanks.

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15 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174763 Points)
Replied 27 March 2018

Check 'Schedule SI'...... rectify Sr. 4 '112 (LTCG on others)'; if needed.

2 Like

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Mahendra Nath (student) (25 Points)
Replied 27 March 2018

Hai,

As you said, It is correct that Chapter VI A Deductions cannot be deducted from Capital Gains.

But in your case, The Gross Total Income Excluding Long Term Capital Gains is Rs. 2,79,596/-. Loss Adjusted is Rs. 92,630/- and Chapter VIA Deduction is Rs. 40,130/-. So the Total Income Excluding Long Term Capital Gains Amounts to Rs. 1,46,836/-. which is below basic exemption limit of Rs. 2,50,000/- You can deduct unaviled basic exemption limit which amounts to Rs. 1,03,164. from Capital Gains. So Capital Gains is Rs. 1,00,884 which is below 1,03,164. so , ,the tax liability is Zero.

4 Like

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 March 2018

I endorse mr. Mahendra view...

2 Like

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 27 March 2018

Good Evening to All...

@ Ms. Bhawna.,

Your attachments shown only the shedules of "PART B - TI & PART B - TTI" it's only shown after computation of Income which is feed by Yourself. So, No more clarity and haven't any solutions about your query.

So,

Please shown your values of feed by yourself in the table of "SHEDULE - CG" and it's reflections of "SHEDULE - SI" after checking then only will give Solutions...

As per Mr. Dhirajlal Rambhia Sir's view is correct. Check out Yourself in the above said Columns...

2 Like

Bhawna (Ms.) (123 Points)
Replied 27 March 2018

Thanks Sir.

Please find attached the screenshots of the CG and SI tabs of the Utility. I have mentioned the names of the images accordingly in series.

Please check and advise.

Attached File : 1698899 20180327232241 cg and si.rar downloaded: 132 times

2 Like

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RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 28 March 2018

Advisable for Download New ITR Utility...

Bcoz,

In your uploaded Image"SHEDULE - SI -> Column No 5 -> 112 (LTCG other) Income Shown Rs. 100884. But, In Column (ii) and (iii) values are Missed....

Please go to check out and Try to file. Also use "JAVA UTILIY"

Note : Also wait for the reply from Mr. Dhirajlal Rambhia Sir's view...

3 Like

Bhawna (Ms.) (123 Points)
Replied 28 March 2018

@ Mr. Dhirajlal Rambhia Sir, Please check the screenshots of the "CG and SI" pages of utility I have attached in my reply to Sir Raja P M. Please check and advise.

Thanks.

1 Like

Bhawna (Ms.) (123 Points)
Replied 28 March 2018

@ Mr. Mahendra , @ Mr. Ramakrishnan R.. Sir ... Thanks for your reply.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174763 Points)
Replied 28 March 2018

After verification of the additional data, and subject to verification of loss adjustment of 92,630/-

It can be concluded that the LTCG (after the claim of Rs. 4,12,395 u/s. 54F) gets adjusted under Basic Exemption limit of Rs. 2,50,000/-, there by there is no tax liability.

Appreciate the conclusion of Mr. Mahindra for that.

So, herewith confirm that the TDS amount is totally refundable, subject to loss adjustment claimed.

Good Luck.

2 Like

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 28 March 2018

Thank You for Reply and Confirmation My Dear Mr Dhirajlal Rambhia Sir... Thank You Once Again... 😊😊😊😊😊

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RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 28 March 2018

After Deduction sec 54F Rs. 412395... The Tax liability is 0...

TDS refundable...

>>> GOOD LUCK <<<

1 Like

Bhawna (Ms.) (123 Points)
Replied 28 March 2018

@ Mr. Dhirajlal Rambhia Sir, Thanks for your reply.

Sir, you have mentioned "well, did not understand deposit of Rs. 18 lakhs under CGAS for claim of Rs. 4.12 L !!!"
What best can be done then? Please clarify if any other option.

Thanks.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (174763 Points)
Replied 28 March 2018

1. Actually calculation wise it should be 3,93,485/- as LTCG is 21.86% (so, check the difference of 19K extra claimed.)

2. Secondly in such cases 54EC was better option than 54F

3. And in my opinion, just paying off 20.6% LTCG tax i.e around 80K tax is even more profitable option than to book 18 lakhs for around (3+3) ie. 6 years totally.

But that is out of the box, as related to your query.