I am filing ITR2. aggregate income (div plus interest) is 410000 after applying deductions (old regime).
I also have LTCG of 190000 Rs. Without LTCG ,my taxes would have been zero if 87A is applied. Now with LTCG, the form computes taxes on both aggregate income and ltcg separately. Is this logical? I feel with 87A, my tax on aggregate income is zero and ONLY tax on LTCG should be levied. Is there a glitch in ITR2 form?
Thanks for any help
Logical Computation in ITR2:---
The form computing taxes o both aggregate income and LTCG separately is in line with tax laws. LTCG is subject to tax at applicable rates, and the rebate under Section 87A applies to the tax on other income(like dividends and interest) , not on LTCG.
Tax on LTCG:- LTCG from certain assets is taxed at specific rates. The tax on LTCG is calculated separtely and doesnot get the benefit of the rebate under Section 87A for reducing tax on other income.
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