28 January 2013
Assessee being a NRI file income tax return for A.Y. 2010-11 disclosing total income Rs. 59823 including Short term capital gain of Rs. 20514. So is assessee liable to pay income tax on STCG or he can adjust same against basic exemption limit ???? Now Demand is raised by income tax department...
01 February 2013
The NRI is taxed as normal assessee under Income Tax Act. If any shortfall under basic exemption limit then the capital gain is set off in short fall limit. And the balance amount is taxed under capital gain head.
E.g. For A.Y.2012-13 Normal Income:150,000/- and Capital Gain Income Rs.50,000/-
IT Limit: 180,000/- Short Fall in limit: 180,000-150000=30000/- Capital Gain set of again short fall: Rs.30,000/- The Balance amount is taxed as per capital Gain head is =50000-30000=rs. 20000/-
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