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Dt doubt-plz clarify

(Guest)

hi.if a resident asesse has income from other sources 56000 and long term capital gain of 150000 then hw will tax b computed?

will tax b computed according to tax slab or 6000 will b taxed at flat rate of 20%?

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19 Replies

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 08 April 2013

6000 will be charged @ 20% whihc is the applicable tax rate fot LTCG.

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(Guest)

means if total income here is 206000(150000+56000),then tax slab is not applicale on remaining 6000? 6000 will b taxed at 20%?

Khushbu Jaiswal (CA Finalist) (528 Points)
Replied 08 April 2013

Yes Ashima as said by Giridhar, The Normal income tax rate doesn't apply on special income like STCG, LTCG, Winning from Race Horses, Lottery Income etc.

In case after considering the basic exemption limit if there remains any special income then that remaining special income will be chargable at their special rate but not at normal rate.

Here the special rate is 20% on LTCG.

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CA Kumar Mukesh (CA CMA FINAL and Advance Excel Trainer) (6886 Points)
Replied 08 April 2013

Originally posted by : ashima
	hi.if a resident asesse has income from other sources 56000 and long term capital gain of 150000 then hw will tax b computed? will tax b computed according to tax slab or 6000 will b taxed at flat rate of 20%?

If income from other sources has not contains any casuals income like winning of lotteries etc. then Long term capital will be taxable @ 20.6% (20*(1.03))

and if no then no tax will be paid on LTCG & other sources income will be taxable @ 30.9% (30(1.03))

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TKKKKKK (PRACTICING CA) (3272 Points)
Replied 08 April 2013

20% on 6000....

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Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 April 2013

To add , marginal relief will be allowed while taxing LTCG &STCg u/s 111A... Marginal relief is allowed when total inc excluding Ltcg is less than basic exemp limit rs. 2lacs.... In your case Marg relief=basic ex limit less(-) total inc excluding LTCG So, taxable ltcg after considering marginal relief= 2lacs-0.56 lacs=1.44 lacs,such 1.44 Lacs will be taxed @ 20% ..

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(Guest)

144000?

Saurabh Maheshwari (B.com,ACA) (5923 Points)
Replied 08 April 2013

144000 is taxable ltcg after marginal relief..

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(Guest)

but ltcg is of 150000.................

(Guest)

and even in book answer is 1236....................

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PIYUSH SINGH (student) (2471 Points)
Replied 08 April 2013

According To Section 112 of the Income Tax Act, If Total income of Resident Individual/H.U.F as reduced by LTCG is less than the exemption limit. Then, LTCG shall be reduced by that much amount by which income falls short to exemption limit.

As per Your question Income from other sources:56000, LTCG :150000

Basic Exemption limit is Rs. 200000

LTCG shall be reduced by Rs.144000 to make other Income to Rs. 200000 i.e Basic Exemption Limit.

Balance Rs. 6000 will be Taxed @ 20%.

3 Like

parwani (proprietor) (53 Points)
Replied 09 April 2013

Sir Plz clarify …..

(1)Bank started in Jan 2013…… Bank paid rent from oct to Dec 2012 after deducting TDS.

TAN taken in Jan 2013. Q3 retun not filled ……… In q4 what will be TDS implements

& how to show in q4 for tds for Oct to Dec 12. Further Rent for March paid in April & tds deposited in April 13 so it must be in q1 2013.

Kirti Arora (Company secretary CA final Student) (75 Points)
Replied 09 April 2013

Piyush I am 100% agree with you..here I would like to add one thing that if income from other source is casual income i.e. winning from horse race, lottery the same will be taxed separetly i.e. @ 30%.

2 Like