LTCG EXEMPTION AND TAX APPLICABILITY

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jaya (Querist)
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14 August 2025 hi,
as per my knowledge, income from LTCG is Exempted u/s 10(38)..so do i need to mention the LTCG amount in CG statement and in EI both? as i have mentioned in CG and it under EI but it is still showing the tax on LTCG in TTI...what should i do so that it will not calculate the Tax in TTI?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 August 2025 Earlier, LTCG arising from Sale of Listed Equity Shares or unit of Equity Oriented Fund or of Business Trusts, were exempt from income tax u/s 10 (38) of the Income Tax Act subject to fulfilment of prescribed conditions.
The Finance Act, 2018, has withdrawn the exemption u/s 10(38) and introduced a new section 112A in the ITA, to tax such LTCG exceeding Rs. 1 Lakh at the rate of 10%. (modified in finance act 2024 again) The amendment is effective from 01stApril, 2018 and accordingly will apply to sale of listed equity shares, unit of Equity Fund or of Business Trust on or after 01st April, 2018. It is pertinent to note that sale transactions undertaken before 01st April, 2018 were entitled to exemption u/s 10(38).

jaya

jaya (Querist)
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14 August 2025 ok... and he should not mention it under CG right? suppose person got 20k as LTCG then does he need to mention it under 112A?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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14 August 2025 The declaration will be under Schedule 112A, which will get updated in Schedule CG by utility itself.

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