Sir
Can we deduct basic exemption limit from capital gain computed with indexation and without indexation to compute relief provided under 2nd proviso to section 112.
As per income tax portal, differential tax is calculated without considering basic exemption. Then tax calculated @ 12.5% and then deducted the differential tax. It cause heavy taxes to some assesessee having no other income .
I have checked with ITR Excel utility which is also calculating differential tax without considering basic exemption.
Tax is calculated after deducting basic exemption @ 12.5% then deducting differential tax to arrive net tax liabibility.
But for calculating differential tax, basic exemption is ignored.
File complaint under Grievances. if there is difference in calculations as per rules.
CAclubindia
