Reduce tax liability

Tax queries 525 views 2 replies

Subhendu S Sanyal

B.Com(C.S.) CA FINAL

666 Points Posted on 07 July 2014

Is there a possibilty of reducing tax Liability in the given case(enclosed)..

Thanks..

MR. ABC
FINANCIAL YEAR 2013-14;ASSESSMENT YEAR 2014-15
STATEMENT SHOWING COMPUTATION OF TOTAL INCOME
Particulars				Amt(In Rs.)	Amt(In Rs.)
I. INCOME FROM SALARIES:
Gross Salary received from DEFLimited(including Leave Encashment)			1,738,000
	Less: i. Allowance exempt u/s 10		(231,066)
	ii. Tax on Employment		(2,095)	1,504,839
Uncommuted Pension from DEFLimited				148,592	1,653,431

II. INCOME FROM OTHER SOURCES:
a)Dividend received from XYZ Limited-Rs.91,875-Fully Exempt u/s 10(34)
b)Purchase of Property for inadeqate consideration chargeable u/s 56(2)(vii):
Share of Ownership-50 %,Co-Owner- Mrs. RST
	Stamp duty value of House Property purchased		996,150
	Less:Purchase Consideration		(850,000)	146,150
c)Income from Bank Interest /Public Deposits-
	SCB Bank			56,750
	HDFC Bank			181,004
	State Bank of India			21,321
	HDFC Limited			77,931	483,156
		GROSS TAXABLE INCOME			2,136,587
	Less: Deduction under Chapter VI-A:
	80C-
	LIC Premium		100,000
	Tution Fees		125,000
	Stamp duty paid on purchase of House Property(to the extent of ownership-50%)		59,779
			284,779
	But Restricted to			100,000
	80 D			20,000
	80 G			3,059
	80 TTA			10,000	(133,059)
		TAXABLE INCOME			2,003,528
	INCOME TAX Thereon			426,058
	Add: Education Cess @ 3%			12,782
		TAX LIABILITY			438,840
	Less: Tax Deducted at Source(vide Form 16 /16 A )
	DEF Limited			276,628
	State Bank of India			2,133
	HDFC Limited			7,794
	HDFC Bank			18,100
	SCB Bank			5,675	(310,330)
		TAX PAYABLE			128,510
Details of Losses c/f to Future Years-
Short term capital loss of Rs. 1,14,04,324 pertaining to F.Y. 2011-12(A.Y. 2012-13)

Attached File : 143506 1335144 computation.xls downloaded: 163 times

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 07 July 2014

sorry my friend... you query was to reduce tax liablity but i found an error which will increase your tax liability.... error is for 80TTA. income from other sources include intt. income on FD and tds has also been deducted on this, which is claimed by you. 80TTA is available for deduction only on interest in savings a/c (bank or post office) but this deduction is not available on intt. on FD. therefore deduction of 80TTA is incorrect. also check for intt. calculation under section 234B/C.