Tax planning
This query is : Resolved
04 August 2011
one of my client has net income after deduction Rs. 291751. of which she has ltcg and stcg of special rate. i have make following calculation of tax.
STCG LTCG OTHER TOTAL
income 177842 38017 75892 291751
EXEMPTED76091 38017 75892 190000
NET 101751 0 0 101751
TAX RATE0.15 0.20 0
TAX 15263 0 0 0
TOTAL 15263
ECESS 3% 458
TOTAL 15721
MY QUESTION IS :
1. CAN I SET OF BASIC EXEMPTION LIMIT FIRST AGAINST LTCG AS A TAX PLLANNING?
2. IS IT MY ACTION IS CORRECT? IF NOT THEN WHAT IS COORECT ACTION?
3. IF YES THEN WHAT IS MY ACTION AGAINST THE NOTICE U\S 142 OF INCOME TAX ACT FOR THE SAME ISSUE.?
STCG LTCG OTHER TOTAL
income 177842 38017 75892 291751
EXEMPTED76091 38017 75892 190000
NET 101751 0 0 101751
TAX RATE0.15 0.20 0
TAX 15263 0 0 0
TOTAL 15263
ECESS 3% 458
TOTAL 15721
MY QUESTION IS :
1. CAN I SET OF BASIC EXEMPTION LIMIT FIRST AGAINST LTCG AS A TAX PLLANNING?
2. IS IT MY ACTION IS CORRECT? IF NOT THEN WHAT IS COORECT ACTION?
3. IF YES THEN WHAT IS MY ACTION AGAINST THE NOTICE U\S 142 OF INCOME TAX ACT FOR THE SAME ISSUE.?
04 August 2011
In fact you can say it differently also-
The 2 special rates are prescribed U/s 11A and Section 112.
We have to first apply section 111A i.e.
Tax Rate on STCG @ 15% as it comes first.
The excess then the basic limit is comprised of of STCG only.
So, luckily your tax planning is a correct tax planning.
Query No3 - Can be deleted.
In fact you can say it differently also-
The 2 special rates are prescribed U/s 11A and Section 112.
We have to first apply section 111A i.e.
Tax Rate on STCG @ 15% as it comes first.
The excess then the basic limit is comprised of of STCG only.
So, luckily your tax planning is a correct tax planning.
Query No3 - Can be deleted.
19 August 2011
one of my client has net income after deduction Rs. 291751. of which she has ltcg and stcg of special rate. i have make following calculation of tax.
STCG LTCG OTHER TOTAL
income 177842 38017 75892 291751
EXEMPTED76091 38017 75892 190000
NET 101751 0 0 101751
TAX RATE0.15 0.20 0
TAX 15263 0 0 0
TOTAL 15263
ECESS 3% 458
TOTAL 15721
MY QUESTION IS :
1. CAN I SET OF BASIC EXEMPTION LIMIT FIRST AGAINST LTCG AS A TAX PLLANNING?
2. IS IT MY ACTION IS CORRECT? IF NOT THEN WHAT IS COORECT ACTION?
3. IF YES THEN WHAT IS MY ACTION AGAINST THE NOTICE U\S 143(1) OF INCOME TAX ACT FOR THE SAME ISSUE.?
STCG LTCG OTHER TOTAL
income 177842 38017 75892 291751
EXEMPTED76091 38017 75892 190000
NET 101751 0 0 101751
TAX RATE0.15 0.20 0
TAX 15263 0 0 0
TOTAL 15263
ECESS 3% 458
TOTAL 15721
MY QUESTION IS :
1. CAN I SET OF BASIC EXEMPTION LIMIT FIRST AGAINST LTCG AS A TAX PLLANNING?
2. IS IT MY ACTION IS CORRECT? IF NOT THEN WHAT IS COORECT ACTION?
3. IF YES THEN WHAT IS MY ACTION AGAINST THE NOTICE U\S 143(1) OF INCOME TAX ACT FOR THE SAME ISSUE.?
26 July 2025
https://docs.google.com/document/d/1LL_oAIwdHQmY3_YbFhn2XvDNnIRi01BtBYSRPtZyOTk/edit?usp=sharing
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