LTCG EXEMPTION AND TAX APPLICABILITY
This query is : Resolved
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?
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?
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The Finance Act, 2018, has withdrawn the exemption u/s 10(38) and introduced a new section 112A in the ITA, to tax such LTCG exceeding Rs. 1 Lakh at the rate of 10%.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).
The Finance Act, 2018, has withdrawn the exemption u/s 10(38) and introduced a new section 112A in the ITA, to tax such LTCG exceeding Rs. 1 Lakh at the rate of 10%.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).
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?
14 August 2025
The declaration will be under Schedule 112A, which will get updated in Schedule CG by utility itself.
18 August 2025
thanx...i have one more querry...if you can pls help me out on that...
suppose somebody has opted for old regime while submitting the papers to his/her office for tax calculation purpose.. that time he/she came under tax slab and subsequently company deducted 15k from the salary..now he/she is opting for new regime while filing the return ...tax applicable is getting rebate u/s 87A..my question is the 15k which company deducted should get back as refund no?
suppose somebody has opted for old regime while submitting the papers to his/her office for tax calculation purpose.. that time he/she came under tax slab and subsequently company deducted 15k from the salary..now he/she is opting for new regime while filing the return ...tax applicable is getting rebate u/s 87A..my question is the 15k which company deducted should get back as refund no?
18 August 2025
Yes, after deducting tax liability the excess amount is refunded back. & assessee is at liberty to choose any regime while filing return, irrespective of tax calculation of employer.
18 August 2025
Thank you so much..i m filing that return but it is not showing the refund part...i dont know y...i will check with the department...thank you once again
18 August 2025
Also Check form 16 for verification of TDS deduction.
23 September 2025
Good luck....
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