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Tax on long term capital gain

DRock (ABC) (31 Points)

28 June 2016

Hi All,

One of my client has sale NA plot, Without any indexation long term capital gain is 16500.

Other income from salay for that client is 72000. What will be his tax on above long term capital gain?

Is 20% of 165000 or Is it 0?

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4 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 28 June 2016

Assuming that the capital gain is Rs.1,65,000, the total taxable income is within the exemption limit of Rs.2,50,000 and hence no tax is payable provided the assessee is a resident individual/HUF.

1 Like

Senu Reddy (ca final) (291 Points)
Replied 28 June 2016

Yes, capital gain is calculated any thing after adjusting the basicexemption limit.. in your case there will be no tax....

CA shanky pahoja (accountant) (615 Points)
Replied 29 June 2016

tax is charged at the rate of 20% with indexation or 10% without indexation which ever is more benifical to assessee. however slab benifit is available in both cases and in your case no tax is chargeble as cap gain and salary income does not exceed maximum income not chargable to tax which is 250000

DRock (ABC) (31 Points)
Replied 30 June 2016

I tried to file return -itr 2, with excel utility provided on income tax site. If i enter 165000 in ltcg it calculate tax 20% of it as 33000. Anything i missing to enter? Calculation contradicting what you guys said.