Tax Calculation

This query is : Resolved

Murtuza Contractor (Querist)
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22 February 2009 In case of resident individual, what has to be given preference to deduct the basic exemption while calculating the tax if that person has income taxable at normal as well as special rate of tax.

e.g: If his income from other sources is Rs. 80,000/-, short term capital gain taxable at special rate of 10% is Rs.15,000/- and long term capital gain taxable at special rate of 20% is Rs.2,00,000/-. In which order should the above said incomes can be deducted as basic exemption from tax.

chetan soni

chetan soni (Expert)
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23 February 2009 Basic exemption is not available for LTCG. So the tax calculations are as follows :

Other Income & STCG : Rs. NIL
LTCG: Rs. 40,000 ( @ 20%)

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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23 February 2009 Mr.Chetan utilization of ltcg is absolutely allowed even agst LTCG.
U will first discharge IFOS, then LTCG and STCG(regd 2nd and 3rd option there is no prescribed law, as a result the assessee can go for the amt which is most beneficial to him).

Murtuza Contractor

Murtuza Contractor (Querist)
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23 February 2009 thnx Mr. Nitin

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