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Basic exemption on ltcg

sri.student (student) (144 Points)

11 March 2012

Whether basic exemption can be claimed in respect of LTCG if the assessee is not having any other source of income?

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17 Replies

RaGHuRaM (The Easy are never Good and the Good are never Easy....) (4952 Points)
Replied 11 March 2012

Yes. The unexhausted basic exemption limit can be claimed against long term capital gain...

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Sirisha (Articles CA final student) (71 Points)
Replied 11 March 2012

NO, LTCG does not have any exemption limit it is taxable @ a flat rate of 20% on the amount of capital gains

CA SACHIN VIJ (Chartered Accountant) (112 Points)
Replied 12 March 2012

YES SLAB BENEFIT IS AVAILABLE AS PER THE CATEGORY OF TAX PAYER

[Tax on long-term capital gains.

SECTION 112. (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, [being a resident,]-

(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income ; and

(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent :

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 ;

4 Like

CA Ashish Joshi (CA) (265 Points)
Replied 12 March 2012

Agree with Mr.Sachin.

www.bestCAclasses.com (Director) (35 Points)
Replied 12 March 2012

IF THE BASIC EXEMPTION LIMIT IS NOT EXHAUSTED BY OTHER SOURCES OF INCOME.. THE UNEXHAUSTED AMOUNT CAN BE CLAIMED SHOULD BE DEDUCTED FROM THE LTCG .. ONLY THE BALANCE LTCG REMAINS TAXABLE AT 20%..

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AMAN JAIN (Practice) (472 Points)
Replied 12 March 2012

I AGREE WITH CA. SACHIN, THE UNEXHAUSTED BASIC EXEMPTION CAN BE CLAIMED, AND THE BALNCE AMOUNT SHALL BE CHARGED AT THE APPROPRIATE RATE, MOSTLY @ 20%

binny (student) (42 Points)
Replied 12 March 2012

yes basic exemption limit can be claimed first against LTCG nd thn 111A

(Guest)

agree wid CA Sachin

CA. Anoop Bhatia (Partner ) (442 Points)
Replied 13 March 2012

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.

2 Like

Abhi (Manager) (76 Points)
Replied 29 August 2012

Hello Folks,

I have a confusion. request your help in this..

See the below example..

Assessee is a lady..

Income from other sources - Rs 201000

Deduction u/s 80C - Rs 25000

So, taxable income excluding LTCG - Rs 176000

Long term capital gain after indexation - Rs 250000 chargeable @ 20%

Questions --

1. What will be the tax payable in the above case ?

2. As the tax rate between Rs 190000 - Rs 500000 is 10% only, will the above LTCG be cgarged at 20% or 10% ?

3. Can we reduce Rs 14000 from LTCG and pay 10% on the balance or do we need to pay 20% on ( Rs 250000 - Rs 14000) .

Seek advise ?

Thanks, Abhi

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Abhi (Manager) (76 Points)
Replied 31 August 2012

Originally posted by : binny
	yes basic exemption limit can be claimed first against LTCG nd thn 111A

For females will the basic exemption of Rs 190000 be considered or Rs 180000 ??

I was filling up ITR 2 excel utility for my mom and saw that it considered rs 180000 as basic exemption for computing LTCG exemption and not Rs 190000 which is applicable for ladies..

Since there was nothing else to be done now, I paid the excess tax now :(