Computation of tax

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jitendra singh (Querist)
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03 April 2012 total income 250000 including LTCG 120000,lottery income 10000,and remaining other income.what shall be the tax liability

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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04 April 2012 LTCG - Rs. 1,20,000 (taxable @ 20%)
Lottery - Rs. 10,000 (taxable @ 30%)
Other Income - 1,20,000

Assuming the assessee is an individual the slab rate is 1,80,000.

Unutilised slab rate is Rs. 60,000 (1,80,000 - 1,20,000)

Use this unutilised amount as set off.

First reduce Rs. 10,000 from lottery income. Lottery income will become NIL.

Then reduce the remaining Rs. 50,000 from LTCG. Taxable LTCG shall be Rs. 70,000/-

Tax on LTCG @ 20% = Rs. 14,000 as increased by cess of 3%.

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jitendra singh

jitendra singh (Querist)
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04 April 2012 sir as per my knowlege basic exemption limit is not allowed from lottery income.it is taxable at flat 30%

Arvind Tiwari

Arvind Tiwari (Expert)
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04 April 2012 Dear Jitendra,

You are right no threshold limit is applicable for Lottery winning, it is flat 30% whereas it can be adjusted LTCG.

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