Janaki (Student) (31 Points)
26 March 2012Sale Consideration as on 11-12-2011 is Rs.16,85,500/-
Cost of acquisitionas on 1983-84 is Rs.4,539/-.
Plz tell how to calculate interest U/s234 B and C, if any, on the above Capital Gain.
The assessee did not pay any advance tax. And he is not interested to invest the gain in any bonds etc, to claim exemption.
Plz reply urgent.
Giridhar S Karandikar
(Team Lead)
(7553 Points)
Replied 26 March 2012
while computing the taxable income of NRI from LTCG, as per section 115D of the I-T Act, the NRI is not eligible for indexed Cost of acquisition. hence the cost as was incurred wud be deducted from the sale consideration. given below is teh calculation of LTCG & the related interst liability u/s 234B & 234C:
| Sale Cnsd | 1685500 | ||
| Less: COA | -4539 | ||
| LTCG | 1680961 | ||
| Tax @ 20% on LTCG | 336192.2 | ||
| Interest u/s 234B | 302573 | 330957*.90 | |
| 12102.92 | 297861*.01*4 | ||
| Interest u/s 234C | 201715.3 | 330957*.60 | |
| 6051.46 | 330957*.01*3 | ||
| Total Interest | 18154 | ||
it is assuemd that the taxable income would be determined in the month of Jul12 in the A.Y.and the return wud be filed in the same month. hence intereset u/s234b is being calculated accordingly. If the taxable income is beind determined beyong Jul12 then the interest liability u/s 234B wud increase accordingly.
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