Capital gain

This query is : Resolved

Sankar Chakraborty (Querist)
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21 March 2012
Dear Sirs,

I have downloaded a pdf file named “How to compute capital gains” from www.incometaxindia.gov.in under ‘taxpayers information booklet’
Where In the below example I can’t understand Tax on total income = 5,19,000

Please guide me showing calculation method to understand

X’ a resident individual sells a residential house on 12.4.09
for Rs.25,00,000/-. The house was purchased by him on
5.7.2006 for Rs.5,00,000/- and he had spent Rs.1,00,000/-
on improvement during May 2005. During the previous year
2009- 2010 his income under all other heads (other than
capital gains) was NIL
Since ‘X’ has held the capital asset for less than 36
months, (5.7.2006 to 12.4.2009) it is a short term capital asset
for him and its transfer gives rise to short term capital gains.
STCG on sale of house = 25,00,000 - 5,00,000 -
l,00,000
= 19,00,000
Income under “Capital Gains” = 19,00,000
Income under the heads other = Nil
than Capital Gains
Income under “Capital Gains” = 19,00,000
Gross Total Income = 19,00,000
Total Income = 19,00,000
Tax on total income = 5,19,000 ???

please help

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 March 2012 Tax has been calculated using the income tax rates for the AY 10-11.

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