Long term capital gain querry

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Audit/IFRS Manager

264 Points Posted on 03 November 2011

Facts of the case

In A.Y 2011-2012, Mr X is a resident individual having following incomes:

Bank interest - 35,000

LTCG on sale of commercial shop - 5, 00,000

LIC premium paid - 50,000

Now the questions are:

How much is the tax liability of Mr X and at what rates the above incomes are taxable.
Is deduction u/s 80 allowable for LTCG gain.
After availing the deduction u/s 80 can unexpired portion of income not chargeable to tax i.e 160,000 can be netted off against the LTCG.

Please support your answers with relevant sections of income tax act.

Thanks

Replies (4)

CA in practise

131 Points Posted on 03 November 2011

first of all, it is to be noted that LTCG cannot have chVI A deductios.

1)the net tax liability will be inclusive of cess will be 70040

i.e.(500000-160000)*20%=68000+cess2040=70040

2)as said above 80c deductions will be restricted to 35000.

3)yes the standard exemption can be availed

Self Practitioner in Income Tax & GST

480 Points Posted on 03 November 2011

Originally posted by : ksheerabthinathan
	first of all, it is to be noted that LTCG cannot have chVI A deductios. 1)the net tax liability will be inclusive of cess will be 70040 i.e.(500000-160000)*20%=68000+cess2040=70040 2)as said above 80c deductions will be restricted to 35000. 3)yes the standard exemption can be availed