1.25 lakh exemption in LTCG on equity not getting reflected in ITR

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This query is : Resolved

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Users are reporting an issue where the £1.25 lakh exemption for Long Term Capital Gains (LTCG) on equity is not being applied correctly in the online Income Tax Return (ITR) filing system. The full LTCG amount is being used to calculate tax, rather than the reduced amount after the exemption. While the offline utility appears to be working correctly, this discrepancy in the e-filing website needs clarification for accurate tax calculation.

hemang shukla

hemang shukla (Querist)

16 August 2025 while using ITR on efiling web site, 1.25 lakh is not getting reduced from total LTCG. Full amount of LTCG is shown in schedule SI and 10% and 12.5% tax is calculated on full amount.

e.g.
On LTCG of 4 lakh ( as shown in sch 112A) , tax on 2 lakh @ 10% is shown as 20000 and on 2 lakh @ 12.5% as 25000. The total of 45000 is carried to tax due. 1.25 lakh is not reduced from 4 lakh.

please advise if I am making any mistake in filing

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

16 August 2025 We do not find any such difficulty in offline java utility. The tax liability in Schedule SI will get reduced from 2 lakhs at 12.5%. so the net tax liability should be over 75K* 12.5% (plus 20000 over 10% LTCG).
Check offline utility. It is working fine.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 September 2025 Good luck....

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