INCOME FROM PGBP 20000
INCME FROM CG
LTCG-STCL 48000-28000= 20000
IFOS-LOTTERY 26000
TOTAL INCOME 66000
WHAT IS THE TAX LIABILITY OF INDIVIDUAL????
WHETHER LTCG SHOULD BE TAXED AT 20% PLS GIVE REASON
Ruchi
(CA)
(1410 Points)
Replied 13 December 2015
In the present case , your tax liability will be only on your lottery winnings at flat 30% i.e. 26000×30% = 7800 Minus rebate u/s 87A =2000. Total tax = 5800 + 3%= 5974.
As per section 112 (1)(a), benefit is given in case of LTCG if total income is less than the exemption limit where you can deduct the unavailed exemption ftom the LTCG and tax @ 20% will be payable only on balance amount.
In your case , the entire 20000 will be deducted. However, please note that the above exemption is not on winnings ftom lottery which are taxed flatly @ 30%.
Ruchi
(CA)
(1410 Points)
Replied 13 December 2015
Sir, here I have assumed that the assessee is an individual. Total income is within the exemption limit. That is the reason why LTCG is also not taxable here. Otherwise it would also have been taxed @ 20%.
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