Taxation - Income TaxQuestion 5599 of 146
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3. Assuming Mr. Gopal has no other income, his total tax liability shall be -

Options

A` 1,30,940
B` 44,670
C` 1,76,180
D` 1,02,340
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Correct Answer

Option A` 1,30,940

All Options:

  • A` 1,30,940
  • B` 44,670
  • C` 1,76,180
  • D` 1,02,340

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Detailed Solution & Explanation

To compute the total tax liability of Mr. Gopal under the default tax regime u/s 115BAC for the Assessment Year 2025-26:

1. **Total Income Breakdown:**
* **Income from House Property:** ₹ 52,500
* **Income from Other Sources (Rent from plot):** ₹ 30,000
* **Total Other Income:** 52,500+30,000=82,500\displaystyle ₹ 52,500 + ₹ 30,000 = ₹ 82,500
* **Long-Term Capital Gains u/s 112 (with indexation):** ₹ 8,47,003

2. **Adjustment of Unexhausted Basic Exemption Limit:**
* Under the default tax regime u/s 115BAC, the basic exemption limit is ₹ 3,00,000.
* Since Mr. Gopal's other income (₹ 82,500) is less than the basic exemption limit, the unexhausted basic exemption limit is:
3,00,00082,500=2,17,500₹ 3,00,000 - ₹ 82,500 = ₹ 2,17,500
* This unexhausted basic exemption limit of ₹ 2,17,500 can be adjusted against the taxable Long-Term Capital Gains u/s 112.

3. **Taxable LTCG and Tax thereon:**
* Taxable LTCG = 8,47,0032,17,500=6,29,503\displaystyle ₹ 8,47,003 - ₹ 2,17,500 = ₹ 6,29,503
* Tax on LTCG u/s 112 @ 20% = 20\displaystyle 20\\% \\times ₹ 6,29,503 = ₹ 1,25,900.60

4. **Total Tax Liability:**
* Base Tax on LTCG = ₹ 1,25,900.60
* Tax on other income = Nil (within basic exemption)
* Add: Health and Education Cess @ 4% = 4\displaystyle 4\\% \\times ₹ 1,25,900.60 = ₹ 5,036.02
* Total Tax Liability = 1,25,900.60+5,036.02=1,30,936.62\displaystyle ₹ 1,25,900.60 + ₹ 5,036.02 = ₹ 1,30,936.62
* Rounded off u/s 288B = ₹ 1,30,940

Hence, **Option A** is the correct answer.

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