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Tax on Long term capital gain

Raman (Salaried) (78 Points)

27 August 2008

Hi Guru's,

I have a tax query regarding tax in LTCG.

A senior citizen was having PGBP income and is not working for quite some time now. He has stopped filing tax return for past more then 3 years. During PY 2008-09 he may have some LTCG and after taking benefit of indexation total LTCG is come upto 2,00,000. Can any one tell me

1) what would be his taxble income for PY 2008-09.

2) If LTCG is more or less then 2,00,000 then how is table income impacted. Like is there any benefit of having taxable income between 1,50,000 and 2,00,000.

TIA

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4 Replies

VIPLOVE GOYAL (CA STUDENT) (58 Points)
Replied 27 August 2008

a) the tax will be 20% of 5000 i.e. 1000 rs will be the tax liability

b) in case if LTCG is moree than 200000 than 20% tax rate will be applicable

and if LTCG is between 150000 to 200000 than upto 195000 no tax and remaining 5000 rs 1000 will be taxable

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Vijay K. Agrawal (Service) (608 Points)
Replied 29 August 2008

Dear raman,

if LTCG on listed sahres then it is exempted. in other case tax liability will be as under.

for senior citizen - basic exemption is 225000/- on this no tax is payable and on balance amount slab rate will be applicable.in your case nothing is payable

trust matter is clear

Raman (Salaried) (78 Points)
Replied 01 September 2008

I am slightly confused. One of our friend suggested that if LTCG is between 150000 to 200000 than upto 195000 no tax and remaining 5000 rs 1000 will be taxable and you are saying that for senior citizen basic exemption is 225000.

I also had a look at the tax rates for AY 2008-09 and there it seems that there is no tax for senior citizen upto 1,95,0000.

Pls clarify.