How to calculate income tax if LTCG is 5 lakh, salary income 10 lakh and interest income 1 lakh ?

How to calculate income tax for a male if LTCG is 5 lakh, salary income 10 lakh and interest income 1 lakh for AY 2011-12 ?

How to calculate income tax if LTCG is 5 lakh, salary income 10 lakh and interest income 1 lakh ?

3 Replies to “How to calculate income tax if LTCG is 5 lakh, salary income 10 lakh and interest income 1 lakh ?”

1. SANTOSH KUMAR says:

First calculate income tax on income other than LTCG as under and then add tax on LTCG
Salary 1000000
Interest 100000
Income Tax on this income 184000
Income Tax on LTCG @ 20% 100000
Total Tax 284000
Gross Tax liability 292520

2. Sreeresh says:

Gross Total Income is Rs. 16 lakhs (10+5+1).

LTCG will be taxed at 20% plus 3% Education cess. ie; Tax would be Rs. 103,000 (20.6% of Rs. 5 lakhs) subject to any deductions u/s 54.

Balance income of 11 lakhs will be taxed at the following rates.

Basic Exemption limit- Rs. 160,000- nil

Balance taxable income- Rs. 940,000

Upto 5 lakhs @ 10% – Rs. 50,000
5 to 8 lakhs (3 lakhs) @ 20% – Rs. 60,000
Above 8 lakhs (Rs. 140,000) @ 30% – Rs. 42,000

Plus. Education Cess @ 3% – Rs. 4,560 (152,000*3%)

This calculation is subject to any deductions in the salary components (like HRA, transport allowance etc.) and Chapter VI A deductions.

Total Tax- On Normal income- Rs.156,560
– On LTCG – Rs.103,000

Total tax Payable- Rs. 259,560
LTCG is not eligible for Chapter VI-A deductions.

3. SudhakarK says:

first you calculate Tax on your regular income of Salary and interest. add Tax on LTCG @ 20%
Add e.c.& [email protected] 2 + 1 = 3% an outcome will be your tax liability.