Total Income Consideration for calculation of Surcharge

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This discussion clarifies whether the Rs 1 Lakh exemption for long-term capital gains (LTCG) from equity is applied before or after calculating total income for surcharge purposes. The consensus is that LTCG is recorded before exemptions, but the tax calculation, and thus the total income reflected for surcharge, considers the exemption. Examples are suggested to illustrate this process.

Sumit M

Sumit M (Querist)

29 August 2025 Hi,
Please suggest if the LTCG income from equity is added in Total Income post considering applicable exemption of Rs 1 Lacs or before considering this exemption. Any example supporting the response will be helpful. Thanks a lot friends !

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

29 August 2025 LTCG without any exemption is recorded in 'Schedule CG'. But check Schedule SI... Tax is calculated after deducting exemption of Rs. 1.25Lakhs.
So, Schedule TTI reflects the tax calculated as in Schedule SI.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

21 September 2025 Good luck....

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