Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 May 2013 An individual assessee having income from long term capital gain and no other income can avail the deduction of rs. 200,000 of slab rate? or the assessee will have to pay tax on entire capital gain @ 20%?

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
Follow

26 May 2013 An individual & HUF can claim the benefit of basic exemption limit from long term capital gain taxable u/s 112. However such benefit is allowable only to a resident assessee. One must note that yet basic exemption limit benefit is possible but the benefit of deductions under chapter VIA can't be claimed from such long term capital gain income.

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

26 May 2013 Yes,you can take benifit on basic exemption limit

refer sec 112 income tax act

Sec112(1) Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is chargeable under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,—

(a) in the case of an individual or a Hindu undivided family, 50[being a resident,]—
(i)
(ii)
"Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent ;"

so in your case u don't have any income under other heads so you can avail basic exemption and have to pay capital gain on rest

Note: benifits of chapter via not applicable

Upgrade to CAclubindia Pro. Subscribe Now!