Capital Gains u/s. 111A and 112

This query is : Resolved

Kuldip Jain (Querist)
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18 May 2009 If a resident assesssee has the following incomes for A.Y. 2009-10.

Rs.
Short term capital
gain on sale of shares 1,00,000

Long term capital gain on
Sale of land 1,00,000
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2,00,000
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What will be his tax liability in the following circumstances:
1. The shares are sold through recognised stock exchange i.e., STT paid
2. The shares are sold privately to a friend.

C.A.Javid Patel

C.A.Javid Patel (Expert)
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18 May 2009 1. shares sold through recognised stock exchange

sale of shares 7500
(50000*15%)
sale of land NIL
(Considered basic exemption limit)
Total 7500

2. shares sold privately
sale of shares 5000
(50000*10%)
sale of land Nil
(Considered basic exemption limit)
5000
(note : i have assumed here is only above two income)

Kuldip Jain

Kuldip Jain (Querist)
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19 May 2009 Sir
Is there any priority that LTCG would be first eligible for adjutment against basic exemption limit.......

Kuldip Jain

Kuldip Jain (Querist)
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19 May 2009 Please do reply as quickly as possible

Zeeshan

Zeeshan (Expert)
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19 May 2009 look kuldip ltcg is taxable @ 20%. and stcg would be taxable @15%(if stt paid) or at normal slab starting from 10% after basic exemption limit. Therefore it is better to adjust against ltcg first. in the given case you have only two income therefore the above treatment is favourable if the normal income goes to 30% rate then it should be better to adjust the BEL against normal income instead of LTCG.