Income tax calculation for ay12-13
This query is : Resolved
26 March 2012
Individual male-35years
Salary- 1 lakhs p.a
HP- 40000
LTCG- 70000
IOS- 20000
Business loss b/f 20000
Deduction u/s 80c-20000
I set off business loss with HP
So GTIncome under normal rates-(100000+40000-20000+20000)=1400000
LTCG-70000
Less:chapter VI-a
80 c- 20000
Now how to calculate tax payable since if I exclude LTCG of 70000.. 120000(140000-20000) is less than exemption limit but if I include LTCG it comes to 1900000 which is above exemption limit but LTCG is calculated at 20% and not slab rates so I am kinda stuck here.. Can someone resolve this issue??
Individual male-35years
Salary- 1 lakhs p.a
HP- 40000
LTCG- 70000
IOS- 20000
Business loss b/f 20000
Deduction u/s 80c-20000
I set off business loss with HP
So GTIncome under normal rates-(100000+40000-20000+20000)=1400000
LTCG-70000
Less:chapter VI-a
80 c- 20000
Now how to calculate tax payable since if I exclude LTCG of 70000.. 120000(140000-20000) is less than exemption limit but if I include LTCG it comes to 1900000 which is above exemption limit but LTCG is calculated at 20% and not slab rates so I am kinda stuck here.. Can someone resolve this issue??
CA Prashant Gupta
(Expert)
26 March 2012
You can use unabsorbed basic exemption against LTCG. so that, you have to pay tax only on LTCG of Rs. 10000/- i.e. 70000/- less 60000/-(180000-120000).
So the tax payable will be Rs. 5000/-.
Other than that calculate LTCG without applying indexation. Tax will be @10% without indexation on LTCG.
Take what is beneficial for you.
So the tax payable will be Rs. 5000/-.
Other than that calculate LTCG without applying indexation. Tax will be @10% without indexation on LTCG.
Take what is beneficial for you.
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26 March 2012
Thanks...One more issue..now add to the above a STCG u/s 111a of rs. 100000..will i do unabsorbed basic exemption twice...
tax on LTCG of rs.10000(70000-(180000-120000))
tax on STCG (100000-(180000-120000))
tax on LTCG of rs.10000(70000-(180000-120000))
tax on STCG (100000-(180000-120000))
04 April 2012
No the unabsorbed exemption limit shall be used only to the extent of Rs. 60,000 and not twice.
Use the unabsorbed exemption limit against LTCG.
So your final income shall be:
LTCG Rs. 10,000
STCG Rs. 1,00,000
Use the unabsorbed exemption limit against LTCG.
So your final income shall be:
LTCG Rs. 10,000
STCG Rs. 1,00,000
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04 April 2012
You are welcome.
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04 April 2012
Sir if u dont mind can u also look into this.. Exam's coming up..
https://www.caclubindia.com/experts/sec-46-2-confusion-in-2-22-c--938525.asp
I know it didnt come out well as its not formatted properly but see if u can understand my query..Thank u again
https://www.caclubindia.com/experts/sec-46-2-confusion-in-2-22-c--938525.asp
I know it didnt come out well as its not formatted properly but see if u can understand my query..Thank u again
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