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Capital gain vs minimum threshhold limit

LAKSHMI KANTH (TAX CONSULTANT) (449 Points)

24 August 2020

Sir, I have only captial gain from the sale of residential property which is in long term. So, can I get the minimum threshhold limit of Rs.2,50,000 from that capital gain or do I have to pay tax @ 20% on the entire gain that I got., Kindly help me out.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 August 2020

A resident individual can adjust the basic exemption limit against long term capital gains (LTCG). A resident individual can adjust the LTCG but such adjustment is possible only after making adjustment of other income, if any

But as you have only LTCG in your case , than your tax liability is NIL

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LAKSHMI KANTH (TAX CONSULTANT) (449 Points)
Replied 24 August 2020

Sir. my long term capital gain is of Rs.10,00,000 without having any income under any other head , therefore now, do I have to pay LTCG tax @ 20% on Rs. 7, 50,000 after deducting of Rs. 2,50,000 of minimum threshhold limit or on Rs.10,00,000. kindly clarify.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 24 August 2020

Yes, You have to pay LTCG tax ( @ 20% + 4 % Cess on tax ) on Rs. 7, 50,000 after deducting of Rs. 2,50,000 of minimum threshhold limit.
Total tax = 1,50,000 tax + 6,000 cess = 1,56,000/-

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