Tax liability in case of long term capital gain (ltcg)

Hi,

My client is having Long Term Capital Gain income of Rs. 14 Lac. I want to know all the amount after basic exemption limit and deduction u/s 80C will be taxable at flat rate 20% or we can calculate tax liability as per normal slab rate.

Plz provide the various component of gross total income of your client. 

If your client is an individual, the tax payable wud be as follows:

If the GTI includes LTCG, then the LTCG shud be reduced from the GTI and on the balance tax wud be payable at the normal applicable rates.  Also 20% tax wud be payable on the LTCG.

However after reducing the LTCG, the GTI is below the maximum limit not chargeable to tax after availing the deduction u/s 80C and other sections , then the LTCG wud get reduced by the difference between the Basic Exemption limit & the amount which falls short of Basic exemption limit and on the balance LTCG tax wud be payable @ 20%.  For instance, if your GTI is 300000 which includes LTCG of 200000, then the income other than LTCG falls short of Rs80000 of the basic exemption limit.  Hence 80000 would be reduced from Rs.200000 and on the balance LTCG of 120000 tax wud be payable.

In your case you have given the income only relating to LTCG and not any other income.  So if this is the case then tax wud be payable on whole of Rs.14lacs

sir, i hav a question that if there is no other income then can the entire exemption limit be not used and LTCG tax would be payable only on Rs. 1220000?

Client is having only LTCG on sale of land

then the whole of the LTCG would be taxable @ 20%.  Please refer section 112 of the I-T Act.

If there is only LTCG 7 no other income then whole of teh LTCG wud be taxable @ 20%.

But my client can utilise basic exemption and 80C limit or not.

No he cannot. only if there is income other than LTCG then only he can utilize the basic exemption limit.  Deductions under Chapter Vi-A is not available in case of LTCG. hence no ded for 80C is available for your client

Agree with Giridhar...

But I think Proviso of sec 112(1)(a) and sec 112(2) is showing that both can be claimed. Any one can confirm after going through these sections.