jagdish chhugani (engineer) (1004 Points)
04 August 2024Do Grandfathering allowed for LTCG equity / MF sold before 23rd July 2024 , is 1,25,000 exemption allowed if I sold some equity after 23rd july 2024.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(179906 Points)
Replied 04 August 2024
jagdish chhugani
(engineer)
(1004 Points)
Replied 04 August 2024
i understand
CASE 1. Grandfathering allowed for LTCG equity / MF equity orianteds sold before 23rd July 2024 and 1,00,000 examption allowed and balance will be taxed at 20%,
CASE 2. if LTCG equity / MF equity orianteds sold on or after 23rd july 2024 will be taxed 12.5% without Grandfathering.
CASE 3. IS CONFUSING OLD REGIME AGE ABOVE 60
Income at normal rate 2,30.000
LTCG sold before 23rd July 2024 Grandfathering Purchased 2005 - Rs 50,000
LTCG sold AFTER 23rd July 2024 Purchased 2017 Grandfathering NOT COSIDERED -Rs 1,50,000
LTCG Rs 230,000+Rs 50,000+ Rs 150,000=Rs 430,000- Rs 300,000 NOT CHARGABLE TO TAX - Rs 125,000 EXAMPTION=NET LTCG Rs 5000, TAX ON Rs 5000 X 12.5% =625 PLUS CESS 4% 25= FINAL TAX Rs 650
CALCULATION SHOULD BE LIKE THIS , IF GRANFATHERING NOT ALLOWED before 23rd July 2024 AND LTCG Rs 50,000 WILL CHANGED TO LTCG Rs 90,000
LTCG Rs 230,000+Rs 90,000+Rs 150,000=Rs 470,000- Rs 300,000 NOT CHARGABLE TO TAX -Rs 125,000 EXAMPTION=NET LTCG Rs 45,000, TAX ON Rs 45,000 X 12.5% =5,625 PLUS CESS 4% - Rs 225= FINAL TAX Rs 5850
COMENT PLEASE
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(179906 Points)
Replied 05 August 2024
The Ministry of Finance is currently evaluating several options regarding the newly announced revised Long Term Capital Gains (LTCG) regime, which aims to eliminate indexation benefits for property, gold, and other unlisted assets.
The tweaks to the Finance Bill may be undertaken in the run-up to the passage of the Finance Bill 2024-25 in Parliament.
Sources have told Business Today TV that the proposal is to apply the indexation change prospectively, starting from FY26 instead of the current year, to provide ample time for individuals planning to sell their properties.
The new provisions for the taxation of capital gains came into force on July 23, 2024.
Another proposal under consideration is to offer property sellers a choice between a 20 percent rate with indexation and a 12.5 percent rate without indexation under section 112 of the IT Act.
However, some officials are not in favor of this option as it could complicate the process.
Sources added that while there is no plan to reverse the decision, some adjustments might be made to mitigate the impact, as suggested by industry stakeholders.
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