Computation of income tax taking sec. 80c benefit
This query is : Resolved
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 ?
Message likes :
1 times
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
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.
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 ?
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.
Message likes :
1 times
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
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- ITR validation error - Balance sheet is not filled
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
