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 ?
Rate these answers

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

  1. First calculate income tax on income other than LTCG as under and then add tax on LTCG
    Salary 1000000
    Interest 100000
    Gorss Income 1100000
    Income Tax on this income 184000
    Income Tax on LTCG @ 20% 100000
    Total Tax 284000
    Add- Education Cess 8520
    Gross Tax liability 292520


  2. 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.






Leave a Reply

Your email address will not be published. Required fields are marked *