Compute the income tax

gross total income excluding short term capital gains=322000+32520

                                                                                                 =354520

                                                              total income            = 354520

                                            income tax on total income=3452+104(EC & SHEC @ 3%)

                                            income tax on short term capital gains=515000*15/100

                                                                 income tax= 77250+2318(EC & SHEC @ 3%)

                                                                 total tax=83214

Hi mohammad

Can i get deduction under chapter VI-A for short term capital gain.

Originally posted by : chetan
	Hi Friends Pls calculate the income tax on below mentioned income for AY 10-11. 1) short term capital gain made out frm house property Rs 515000/- 2) income from salary  Rs 322000/- 3) income fro other sources 32520/-

all such income will be normal income and no special rates are applicable, chapter VIA deduction is abailable from total income. 

Originally posted by : chetan
	Hi mohammad Can i get deduction under chapter VI-A for short term capital gain.

YES                           

Originally posted by : U S Sharma
	Originally posted by : chetan Hi Friends Pls calculate the income tax on below mentioned income for AY 10-11. 1) short term capital gain made out frm house property Rs 515000/- 2) income from salary  Rs 322000/- 3) income fro other sources 32520/-   all such income will be normal income and no special rates are applicable, chapter VIA deduction is abailable from total income.

YES  AGREED            

I AM CONFUSED

PLS SOLVE MY CONFUSION

ACC. TO ME IF ON STCG FLAT RATE IS NOT APPLICABLE THEN TAX WILL BE CALCULATED AS FOLLOWS-:

TOTAL INCOME-515000+322000+32520=869520

THEN TILL 1,60,000-EXEMPT

1,60,000-5,00,000=34000(10%)

5,00,000-800000=60000(20%)

ON 69520= 20856(30%) + 3445.68(CESS ON TOTAL TAX)

SO TOTAL TAX IS 118301.68

PLS TELL ME ON STCG TAX WILL BE CALCULATED AT FLAT RATE OR SLAB RATE

THANKS IN ADVANCE

STCG Tax will be calculated on a flat rate

Sorry Mr. Mohammad's but i think your calculation is wrong because Short Term Capital Gain (Except STCG U/s 111A on Shares) is always be taxable as Normal Income therefor Income Taxable as below :

TOTAL INCOME = 869520 ( 515000+322000+32520 )

TAXABILITY    (FOR AY 2010-11)
UP TO 1,60,000      =  NIL
1,60,000-3,00,000 = 14000(10%)
3,00,000-500000   = 40000(20%)
ABOVE 500000      = 110856(30%) 

TAX = 164856

EC & SHEC ON TAX =  4946 (3% on 164856)
TOTAL TAX = 169802/-

NOTE : 1. Deduction U/s 80C to 80U cannot excced the Gross Total Income (after excluding STCG U/s 111A and  LTCG) , so  Deduction not allowed from STCG on Shares(111A) but allowed from any other STCG.

2. Tax Rate on STCG on Shares U/s 111A   =  15% (Sometime 10%)

     and Tax Rate on Other any  STCG            =  SLAB Rate

(All user plz read question carefully  as raise by Mr. Chetan, Mr Chetan says Taxaility for AY 2010-11 so Slab Rate applicable for AY 2010-11)

Thanx. sandeep

i did nt read q. carefully and calculated tax for a.y. 2011-12 instead of 2010-11

gross total income excluding short term capital gains              =     322000+32520

                                                                                                              =     354520

                                                              total income                          =     354520

                                            income tax on total income                  =     3452+104(EC & SHEC @ 3%)

                            income tax on short term capital gains            =      515000*15/100

                                                                 income tax                         =      77250+2318(EC & SHEC @ 3%)

                                                                 total tax=83214

In the given Case., the Short term capital gain of  is added to Gross total Income ., rather than to special rate., because the spl. rate of 15% is for the short term capital gain on transfer of shares in recognised stock exchange....hence the rate doesnt apply here ...and Mr. Sandeepcalculation is correct