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
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- IS AUDIT MANDATORY IF COMMISSION INCOME IS MORE THAN 50 LAKH
- Journal entry of busniess expenses
- GST Rate for Catering Services
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Cash balance limit and property purchases limit
- Can we choose not to report losses in ITR3 if they cannot be carried forward?
- FCRA 6 E- Intimation
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
