Surcharge applicability on LTCG loss

This query is : Resolved

Quick Summary

LTCG loss cannot be set off against salary or other income, so total income remains Rs 52 lakh. Surcharge at 10 percent applies. Marginal relief may be available as income is just above Rs 50 lakh.

suren

suren (Querist)
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23 March 2026 Dear Experts,

The assessee has taxable income from salary and other sources of 52 lacs after claiming standard deduction and NPS Benefit under new regime. He has long tram capital loss of Rs. 300000/-. Is he suppose to pay surcharge @ 10% on tax on 52 lacs income or his income would be considered below 52 lacs after deducting capital gain loss of 3 lac?

Please guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 March 2026 The assessee is required to pay the 10% surcharge on the tax calculated for the income of ₹52 lakhs.
The long-term capital loss of ₹3,00,000 cannot be deducted from salary or other sources to reduce the total taxable income below the ₹52 lakh threshold for surcharge purposes.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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24 March 2026 Surcharge is calculated based on the "Total Income". Since the capital loss cannot be set off against your salary and other sources, your total income remains ₹52 lakhs for the purpose of determining surcharge applicability.
Since the income (₹52 lakhs) is only marginally above the ₹50 lakh threshold, the assessee may be eligible for Marginal Relief.

suren

suren (Querist)
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30 March 2026 Thank you Sir for clarification!

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 March 2026 You are welcome.

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