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Tax liability calculation?

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ujwal mishra

41 Points Posted on 28 May 2021

Total income of Hari, a resident individual is 4,90,000 for AY 21-22. His income compromise of LTCG on sale of land is 2,00,000 and PGBP is 2,90,000. Find tax liability.

Replies (4)

Quick Summary

This discussion clarifies how to calculate tax liability for an individual with both Long-Term Capital Gains (LTCG) on land sale and Profits and Gains from Business or Profession (PGBP) income. It explains that business income must be adjusted against basic exemption limits before applying tax rates to LTCG. The final tax liability is calculated based on the remaining taxable income and the specific rates for business income and LTCG.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 28 May 2021

His total liability will be 30680 rupees

Sivaramaraju G

Learner

2398 Points Posted on 28 May 2021

Remember you can use BEL for LTCG only after all other incomes are adjusted against BEL.

here you have business income of Rs. 2,90,000 which has ate all your BEL and you don't have BEL balance to use against LTCG. hence you have to pay tax as below

Business income is 2.9L-2.5L=40K*0.05=2K

LTCG=2L*0.2(LTCG Rate)=40K

Tax Liability is 40k+2k-12.5k=29.5k+1.18k=30.68k