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Capital gain

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HARIS (Querist)
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25 December 2013 If i have total income of Rs.300000 in fy 2012-13,out of which Rs.100000 is LTCG then, 1. what will be the tax amount. 2. How can i apply the basic exemption limit.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 December 2013 The total income of Rs. 3 lakhs is to be bifurcated into LTCG & other income.

Tax on LTCg = 1,00,000*20% = 20,000
Tax on other income = NIL (since it is 2,00,000 and does not exceed the exemption limit)

Take another eg.

LTCG-170000
Other income-130000
Total Income-300000

Tax will be calculated as under:

1. Exemption limit is Rs. 2 lakhs
2. Other income taxable at normal rates is Rs. 1,30,000. Still balance of Rs. 70,000 is unutilized.

3. This unutilized limit of Rs. 70,000 will be reduced from LTCG and the balance LTCG shall be taxable.

4. Tax on LTCG = (1,70,000 - 70,000)*20% = 20,000

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