Is LTCG on property sale included in total income for surcharge calculation?

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This discussion clarifies whether Long Term Capital Gains (LTCG) from property sales are included in an NRI's total income for the purpose of calculating income tax surcharges. Specifically, it addresses a scenario where an NRI has low annual income but a significant LTCG from a property sale, questioning if this LTCG pushes their total income over the surcharge threshold or if it's taxed separately at 20%.

Sunil Bali

Sunil Bali (Querist)
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31 March 2024 Hello.

If a NRI has less than 10 lacs of income per annum in India but decides to sell his/her property with LTCG of more than 50 Lacs, how would he/she be taxed?

Would the income exceed the 50 lacs surcharge threshold in this case or LTCG would be separately taxed at 20% without including in the total income?