Computation of tax

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raghavendra (Querist)
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28 September 2012 Income from house property:195000
short term capital gain:12000
long term capital gain sale of silver:35000
debentures u/s 80CCC, 80C 80DD,80G:7000
life insurance premium,contribution to public provident fund:28000
WHAT IS THE TAXABLE INCOME FOR A RESIDENT INDIAN? WILL BE ANY DIFFERENCE IF THE ASSESSEE IS A HUF? please give the step by step solution.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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29 September 2012 Your total taxable income is Rs.242000(195000+12000+35000) on which special rate of taxable income is Rs.35000 i.e 20% tax rate on long term capital gain. Assume short term capital gain doesn't comes under section 111A so it would be taxed according to the normal tax rates.

So your gross total income is before consideration of long-term gain(Because long-term gain doesn't consider for deductions of chapter VIA) Rs.207000(195000+12000) Total Income is Rs.172000(207000-7000-28000).

Total taxable Income is Rs.207000(172000+35000) on which special rate of taxable income i.e20% is Rs.27000 and normal rate of taxable income is Rs.180000(Because of Long term capital gain allowed as to adjust for the portion of gap to the basic exemption limit so for your case you got the benefit of Rs.8000 long term capital gain as exemption because your taxable income before consideration of long term capital gain is Rs.172000).

So now on Rs.27000 pay tax @20% + 2%+1% is Rs.6210 is your tax liability.

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