income tax calcutation

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Guest

Guest (Querist)

07 January 2010 please calculate income tax

income from business 140000.00
L.T.C.G. 50000.00

sanjeev agarwal nainitl

Manmohan ACA, CS

Manmohan ACA, CS (Expert)

07 January 2010 Tax 6000 +180 cess = 6810
Rs. [(140000+50000)-160000]* 20% + 3%

Assumption
1. Person is resident individual aged below 65 years.
2. LTCG is not exempt u/s 10(38).
3. A.Y. is 2010-11.

Pawan Periwal

Pawan Periwal (Expert)

08 January 2010
In my opinion reply of Manmohan is incorrect.

150000(Non taxable bar)-140000(business income)=10000 be set off against Rs 50000 of LTCG. So the LTCG be Rs 40000 on which Tax @ 20% plus 3%

Assumption
1. Person is resident individual aged below 65 years.
2. LTCG is not exempt u/s 10(38)
3. AY is 09-10 and if AY is 10-11, then LTCG be Rs 30000 on which Tax @ 20% plus 3%

Thanks and Regards
Pawan

CA Manasa

CA Manasa (Expert)

08 January 2010 Mr Pawan

Firstly its not Longterm Capital Loss to Setoff and Secondly Long term Capital Loss cannot be Setoff against Business Income.

So I think Manmohan is right

Murtaza I Bhagat

Murtaza I Bhagat (Expert)

08 January 2010 agree with manmohan.

CA Sidhi Gaur

CA Sidhi Gaur (Expert)

08 January 2010 Mr.Pawan is absolutely correct in caculating the tax.LTCG can be shifted to the residual amount not chargeable to tax in case of a resident(assessment year 09-10)..thus out of Rs.50000 LTCG Rs.10000 can be shifted to take benefit of max amount not chargeable to tax..