Compute the income tax

Originally posted by : Sandeep
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)

this calculation is correct....

Originally posted by : Anshu Garg
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

Short term capital Gain tax is calculated by adding to the other heads of Income to get Gross total income and calculated at slab rate....but some spl case like 111A., there is  a spl rate of 15% only for such type of transactions specified in 111A .,like transfer of shares in recognised stock exchange...

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 property515000/-
2) income from salary 322000/-
3) income fro other sources 32520/-

 

Guys there is short term capital gain and it will be calculate as per the slab rate because its not covered U/S 111A.

Therefore total income  = 515000+322000+32520 = 869520

Tax on 869520 =

869520-500000 = 369520*30% = 110856

160000 to 300000 = 14000

300000 to 500000 = 40000

therefore total tax = 110856+14000+40000 = 164856

Add : Edu cess @ 3% on 164856 = 4946

Therefore final tax liability = 164856+4946 = 169802

It is assumed that assessee is male....

-

Regards,

Siddharth Bumb.

Anshu Garg is correct

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