Computation of income tax taking sec. 80c benefit
This query is : Resolved
Jignesh Desai
(Querist)
10 October 2013
An Assessee has: -
(i) Interest Income from FD - Rs. 220000
(ii) Income from Brokerage - Rs. 45000
(iii) Short Term Capital Gain - Rs. 90000
Moreover , he has paid LIC Premium of Rs. 90000
How will his Tax be calculated ?
(i) Interest Income from FD - Rs. 220000
(ii) Income from Brokerage - Rs. 45000
(iii) Short Term Capital Gain - Rs. 90000
Moreover , he has paid LIC Premium of Rs. 90000
How will his Tax be calculated ?
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Dintakurthi Tirumala
(Expert)
10 October 2013
If the Short term capital gain is taxable under special rate then your income is as follows
Taxable income at normal rate Rs.2,65,000(2,20,000+45,000)-Rs.90,000 = Rs.1,75,000.
Taxable income at special rate is Rs. 90,000
Basic exemption limit for A.Y 2013-14 for Individual(non-senior citizen) is Rs.2,00,000.
So your taxable income at normal rate is Rs.1,75,000 only means you have Rs.25,000 gap this gap can be adjust with the short term capital and on then balance amount of Rs.65,000 on this amount calculate tax at special rate.
In case short term capital gain is taxable at normal rates then your taxable income is Rs.2,65,000(2,20,000+45,000+90,000-90,000) and pay tax on Rs.65,000 at normal rates.
OM SAI SRI SAI JAI JAI SAI
Taxable income at normal rate Rs.2,65,000(2,20,000+45,000)-Rs.90,000 = Rs.1,75,000.
Taxable income at special rate is Rs. 90,000
Basic exemption limit for A.Y 2013-14 for Individual(non-senior citizen) is Rs.2,00,000.
So your taxable income at normal rate is Rs.1,75,000 only means you have Rs.25,000 gap this gap can be adjust with the short term capital and on then balance amount of Rs.65,000 on this amount calculate tax at special rate.
In case short term capital gain is taxable at normal rates then your taxable income is Rs.2,65,000(2,20,000+45,000+90,000-90,000) and pay tax on Rs.65,000 at normal rates.
OM SAI SRI SAI JAI JAI SAI
Nikhil Kaushik
(Expert)
10 October 2013
Assuming that the assessee is less than 60 years old, the total income is Rs 3.55 lakhs
Taxable income is Rs 2.65 Lakhs
tax is 10.30% on 65 thousand.
Taxable income is Rs 2.65 Lakhs
tax is 10.30% on 65 thousand.
Jignesh Desai
(Querist)
15 October 2013
I forgot to clarify that the Short Term Gain is on Shares , so it is taxable at Special Rate of 15 % . So, then , how will the Income Tax be calculated ?
Nikhil Kaushik
(Expert)
15 October 2013
then, your taxability shall be as under:
tax @ 15% on Rs 65,000
edu cess @ 3% on tax.
tax @ 15% on Rs 65,000
edu cess @ 3% on tax.
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Dintakurthi Tirumala
(Expert)
15 October 2013
I already given such clarification also in my reply.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
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