Total Income under Capital Gain to be considered in Total Income even though not taxable.

This query is : Resolved

Gaurav (Querist)
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21 May 2025 Hello All,

Currently while computing the Capital Gain tax for a client on sale of residential flat, wherein option of indexation is available. Now as per the updated provisions of Capital Gain tax, either with Indexation or without indexation option to choose is which is tax beneficial can be considered.

In particular case, while the Indexation option was selected and the gain is being invested in the Capital Gain account to be utilised for purchase of property, Winman software is considering the overall Capital gain in the Total Income. On checking with the winman team they pointed out that as per the Income tax forms Total Gain has to be reported to Total Income even though there is Nil Tax liability. But due to this reporting if the overall income crosses 50L, Surcharge gets activated.

Query : Is this understanding correct- to add the Capital gain to Total Income, anyone using different software than Winman could you please check some dummy scenario, I tried to check online but forms are still not made live in Income tax portal hence could not check their.

Regards

Nabin Agarwal

Nabin Agarwal (Expert)
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07 June 2025 No the software is showing wrong calculation. In your case, Capital gain is NIL. I am using CompuTax software, in it o surcharge is getting activated as Capital gain income is NIL. When u are claiming deduction u/s 54 then under the head Income from Capital Gain no income will be calculated. Pls check with your software team, they are misguiding you.