Explain how option c is correct

Vignesh · 1 Sept 2024

Normal income (other than LTCG, STCG and lottery) sirf 30,000 hi hai. Deduction is not available for income taxed under special rates. So you can have deduction in following ways 1) 80c against the entire amount 30,000 and no 80tta deduction at all. Or 2) 80tta for 10,000 and remaining amount as 80c for 20,000

Vaishu · 1 Sept 2024

80C me sirf 20,000 kyu ?

Vignesh · 1 Sept 2024

Edit: Gross Total Income is 8,30,000. Total Income after deduction is 8,00,000

Vignesh · 1 Sept 2024

Unable to upload image or pdf. So couldn't send you full answer. Here are the points to take care in the question. 1) Total income is 8,30,000 2) Deduction is 30,000 (80tta- 10,000 and 80c- 20,000) Note: Deduction is not available against income taxed under Special rates and against lottery winnings- Thus, income available for deduction is 30,000 which has been fully exhausted. Now the Total Income comprises of only LTCG, STCG & lottery winnings. 3) Now calculate tax on LTCG after exhausting basic limit of 2,50,000 @20%, STCG at 15% and lottery @30%. Add cess. Tax liability= 1,14,400.