LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Tax calculation of short term capital gain

sourav (xxx) (27 Points)

03 March 2012

My father recently sold a land which he brought less than 3 years ago. from which he earned STCG of RS 290000. [selling price-(cost of buying+ registration cost)]

my question is how much Income tax he have to pay due to this STCG. His income tax exemtion slab is Rs 250000 and this STCG is the only income in this year.?

can he get tax benifit from LIC insurance premium in this case?

Reply
Follow
Share

13 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 03 March 2012

Hi Sourav,

Please find attached herewith the Excel file containing the Income Tax Calculation.

Regards,
Devendra Kulkarni

Attached File : 169003 941830 tax calculation.xls downloaded: 1643 times

1 Like

CA SUMANTH (LEARNER.....) (294 Points)
Replied 03 March 2012

Agree with Devendra

1 Like

sourav (xxx) (27 Points)
Replied 03 March 2012

sumanth and devendra thnx for ur reply.

I tried your exel sheet but fail because I don't know the meaning of terms like 3E+5 and many others. can you please tell me the Tax liability putting all info given by me?

STCG = Rs 290000

Other Income = Nil

IT exemtion Limit = Rs 250000 [for seniur Citizen]

Lic primium Paid this year = Rs 30000

Devendra (Chartered Accountant) (4775 Points)
Replied 04 March 2012

Refere the file attached herewith. I have made the calculations as per the figures given by you.

Regards,

Devendra Kulkarni

Attached File : 169003 942593 tax calculation.xls downloaded: 527 times

1 Like

sourav (xxx) (27 Points)
Replied 06 March 2012

thanks devendra for your information.

I read in a artical that in case of short term capital gain deduction under 80c ( LIC premium, PPF, or others) not available. are you sure I will get tax benifit from Rs 30000 Lic premium ??

Devendra (Chartered Accountant) (4775 Points)
Replied 06 March 2012

Yes. You shall get the deduction of LIC paid.

Regards,

Devendra Kulkarni

VISHAL SINGH (Chartered Accountant) (71 Points)
Replied 07 March 2012

If STCG is u/s 111A only then Section 80C deduction cannot be availed.Section 111A deals with sale of securities in which STT is paid & period of holding is less than 12 months....Yours is a sale of land so you shall definitely get the LIC premium deuction u/s 80C

1 Like