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Tax on long term capital gain

sanjana.r (Student CA Final ) (135 Points)

12 July 2013

Hi,

The Gross Total Income is around Rs.2,20,000. the total income after Ch VI A deductions is Rs.1,60,000.All the above are excluding Long Term Capital Gain.Now the LTCG is 25,000.Will that be taxable?

Thanks in Advance.

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11 Replies

CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 12 July 2013

if STT has paid then exempt u/s 10(38)

but if STT is not paid then special tax rate @ 10% or 20% as the case may be applicable.

STT refers to securities transaction tax

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Varsha (Student) (1164 Points)
Replied 12 July 2013

Originally posted by : Roshan Begrajka
	if STT has paid then exempt u/s 10(38) but if STT is not paid then special tax rate @ 10% is applicable. STT refers to securities transaction tax

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Revanth (Job) (145 Points)
Replied 12 July 2013

To my knowledge, irrespective of the tax bracket we need to pay 20% on LTCG if no STT has been paid. If STT has been paid then the entire LTCG will be taxable.

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sanjana.r (Student CA Final ) (135 Points)
Replied 12 July 2013

The long term capital arised due to transfer of immovable property

CA CS Roshan Begrajka (Chartered Accountants) (267 Points)
Replied 12 July 2013

20% slab rate is applicable in ur case.

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CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 12 July 2013

as per the rules, the basic exempyion limit must be set off against the normal income and then excess of exemption limit must be set off against the LCTG. say if the basic exemption limit is 200000, the ltcg can be set off against it.

hence the taxable income comes to nil.

STT is applicanble in case of sale of equity shares hance noy relevant in this case

2 Like

chandrika (CA Final student) (107 Points)
Replied 12 July 2013

ur gross total income does not exceed basic exemption limit.

u r not liable to pay any tax.

and to my knowledge STT will come in the case when equity shares are sold.

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C.A. Jignesh N. Mehta (C.A.) (1030 Points)
Replied 13 July 2013

total income after chapter VIA is 160000

Add LTCG 25000

Total Income 185000

Below Taxable Limit

Hence no TAX

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CA SHASHI KUMAR CG (PARTNER) (53 Points)
Replied 13 July 2013

Jignesh's answer is correct. Additing to it, the benefit of adjusting CG to the extent of Basic exemption limit is applicable only for Resident Individual and HUF.

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