tax treatment of long term capital gains

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2010 Is long term Capital gain taxed seperately and then added to tax liablity? or is it added in GTI as regular income?
Also kindly explain the tax treatment when total income is below taxable limit?

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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24 February 2010 Long term capital gain is taxed at a sp ecial rate and deductions under chapter VIA is not available for LTCG. If income is below the exemption limit after LTCG, then no tax liablity.

Sohil Ganeriwala

Sohil Ganeriwala (Expert)
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24 February 2010 Yes, LTCG is calculated separately taxed @20% and later added to the tax amount. If the assesses total income apart from LTCG does not cross the Exemption limit then the balance of the exemption can be set off with the LTCG income. For Ex: if income from other heads is Rs.100,000 and the LTCG is Rs.75,000, my basic exemption limit is Rs.1,60,000. hence Rs.75,000/- can be set off with the balance of Rs.60,000 and the remaining Rs.15,000/- will be taxed at 20%. Chapter VI deductions not available.

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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24 February 2010 Agreed with Mr. Vijay!!!!

Special tax rate is applicable on followings income:
a) LTCG (Sec 112) @ 20%
b) STCG on shares (Sec 111A) @15%
c) Casual Income (Sec 56(2)(ii)) @ 30%

deduction under chapter VI is not available on any of above income, however when Maximum exemption limit goes below then exemption can be taken on LTCG and STCG on shares but not available on Casual Incomes.

Regards!!!
Dinesh S. Adhikari