Sir
I want to have clarification on the following issue:
An assessee has total income of Rs.270000 for a.y,2009-2010 including LTCG Rs.65000. What would be his tax liablity out of the given two:
1. Tax on Total Income excl.LTCG i.e.205000 5500
Tax on LTCG 13000
Total Tax 18500
2. Basic Exemption limit would first be adjusted out OF LTCG and rest of the income will be taxable at 10%.
Basic Exemption Limit 85000+65000 = 150000
Balance Income 120000 Total Tax = 12000
Thanks in advance.
DHIRAJ
Correct is No. 1.
1st treatment is correct.
No. 1 is correct............but second treatment is correct in following situation.....
- When taxable income of the Assessee (Excluding LTCG) is less than basic exemption limit.......then he can adjust LTCG up to his basic exemption Limit and for rest Income , tax @ 20%........
e.g. taxable income 2,00,000(Including 60,000 LTCG)
In this case his taxable Income (Excluding LTCG is 1,40,000) so he can adjust 10,000 of LTCG against it........& has tp pay tax on 50,000 @ 20% rate.......so tax is 10,000.
First one is correct man
actually first of all we provide basic exemption to income other than LTCG and if any balance remains then it is provided to CG
in this case basic exemption limit is wholly deducted from normal income and so nthng is deducted from LTCG
the 1st one is correct method...
Ist one is absolutely right ........
hi every boddy
good explain by rohan
1 correct
hoe to fill the section of capital gain in ITR 2 for Asstt. Year 2009-10
CAclubindia
