Tax payable on Capital Gains

This query is : Resolved

RAKESH AGARWAL (Querist)
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18 July 2008 My client who is a residend women below 65 yrs of age.Her Income for A.Y. 2008-09 consist of Rs. 3.00 lacs from long term capital gains eligible for special rate of tax u/s 112 & Rs. 3.00 lacs from short term capital gains eligible for special tax rate u/s 111A. She has no other income. She has also made investment of Rs. 1.00 lac for claiming deduction u/s 80-C.
Please compute tax liability.

SHIVAM GROVER

SHIVAM GROVER (Expert)
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18 July 2008 IN SHORT TERM CAPITAL GAIN = 300000
INCOME = 300000

LESS 80 C = 100000

TAXABLE INCOME= 200000-145000=55000
(EXCLUDING LTCG)
TAX ON ABOVE = 5500

INCOME FROM LTCG =300000
TAX ON IT @20% =60000

TOTAL TAX PAYABLE=60000+5500=65500
exemption first given from stcg and then from ltcg if i am wrong then plz dont hesitate to correct me thanx....

mohinder kansal

mohinder kansal (Expert)
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18 July 2008 REPLY HAS BEEN MODIFIED

mohinder kansal

mohinder kansal (Expert)
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18 July 2008 REVISED REPLY BY MOHINDER KANSAL AS LONG TERM CAPITAL GAINS WAS TREATED AS EXEMPT

LTCG U/S 112 RS. 300000/-
TAX ON LTCG RS. 31000/- (i.e., 20% ON RS. 300000-145000)

SHORT TERM CAPITAL GAIN RS. 300000/-

TAX @ 10% RS. 30000/-

TOTAL TAX PAYABLE 62000/- + EDUCATION CESS

NO DEDUCTION U/S 80C WILL BE AVAILABLE

RAKESH AGARWAL

RAKESH AGARWAL (Querist)
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18 July 2008 Mr. Mohinder Kansal

Thanks for your advice.

Are you sure that we will get benefit of basic exemption of Rs. 145000/-?

Secondly whether reducing basic exemption of Rs. 145000/- from long term capital gains instead of short term capital gains is correct?
Please clarify it.

Thanks