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Long term capital gain - tax slab

987 views 3 replies

Chirag

General Manager

44 Points Posted on 10 June 2015

Hello,

Mrs. X (Aged 64) has income as follows...

Interest Income - 352342/-

Long Term Capital Gain - 4,47,989/- (From sale of inherited residentail house property )

Investment in 80C - Rs. 1,50,000/-

as per my LTCG Tax payable is subject to basic exemption limit.

up to 5 lk income would be taxed @ 10%.

Incremental income of Rs. 150,331 will be taxed @ 20%

so total tax = 20,000 + 30,066 = 50,066 + Cess @ 3% (Rs. 1501)

Total Tax. = 51567/-

please advise if the understanding is correct.

Replies (3)

CMA Poornima Madhava

CMA

13117 Points Posted on 10 June 2015

Basic exemption limit can be adjusted against LTCG only after adjusing against other income. So

IFOS: 352342 - 150000 (80C) - 202342 (out of 3 lacs exemption limit)

LTCG: 447989 - 97658 (balance out of 3 lacs) = 350331

Tax payable @ 20% on 350331 = 70066 + 3% Cess

Chirag

General Manager

44 Points Posted on 11 June 2015

Originally posted by : Poornima Madhava

Basic exemption limit can be adjusted against LTCG only after adjusing against other income. So

IFOS: 352342 - 150000 (80C) - 202342 (out of 3 lacs exemption limit)

LTCG: 447989 - 97658 (balance out of 3 lacs) = 350331

Tax payable @ 20% on 350331 = 70066 + 3% Cess

Hi,

Thanks for reply...Just want to know will tax limit of 10% i.e. for slab 3 to 5 will not be avialable ??

regards,

chirag