LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Capital Gain Exemption u/s 80C

alaknanda sen (Service) (65 Points)

28 June 2011

Hi,

For F/Y 2010-11, my other income is 35000 and long term capital gain is 500000. How much exemption shall I get u/s 80C?

Regards,
A.Sen

Reply
Follow
Share

19 Replies

Souvik Kumar Ghosh (CA Final) (1368 Points)
Replied 28 June 2011

Dear Mr. Sen,

Deduction u/s-80C is available, inter-alia, for the following:

1. Payment of Life Insurance Premium for self, spouse & children,

2. Repayment of principle amount of house building loan,

3. Purchase of NSC(VIII) issue,

4. Interest on NSC (upto 5'th year)

5. Payment of tuition fees for children.

The above deductions shall in your case be limited to Rs. 35000 only, It is not deductable from Rs. 500000.

Regards,

Souvik

kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 28 June 2011

Originally posted by : Souvik Kumar Ghosh
	Dear Mr. Sen, Deduction u/s-80C is available, inter-alia, for the following: 1. Payment of Life Insurance Premium for self, spouse & children, 2. Repayment of principle amount of house building loan, 3. Purchase of NSC(VIII) issue, 4. Interest on NSC (upto 5'th year) 5. Payment of tuition fees for children. The above deductions shall in your case be limited to Rs. 35000 only, It is not deductable from Rs. 500000. Regards, Souvik

agreed with SKG

@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 28 June 2011

you will get maximum deduction of rs 35000

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 28 June 2011

Originally posted by : Siddharth Bumb
	you will get maximum deduction of rs 35000

Aparna Raja K.C (Student) (520 Points)
Replied 28 June 2011

You can enjoy deduction under 80 C limited to 35,000/- :)

kumar (student) (138 Points)
Replied 28 June 2011

As said by our friends is correct, as capital gain chargeble to tax under different rate and tax is calculated separately while computing the tax liablity subject to some conditions, hence deduction of Rs. 35000/- can be availed.

Pulkesh Mehta (Chartered Accountant) (243 Points)
Replied 28 June 2011

You will get deduction of Rs.35000/-,because LTCG is independently taxable at 15%.

CA. Anubhav Jaggi (CA) (104 Points)
Replied 28 June 2011

As you are resident individual, you will get slab benefit. It means if your total income other than capital gain is below taxable limit, your LTCG will get reduced by unexpired limit of non-taxable limit. i.e.

Max amount not chargeable to tax Rs. 160000

Your other income Rs. 35000

Unexpired limit Rs. 125000

Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000).

No 80C deduction is available, as your other income is below taxable limit.

And Mr.Pulkesh Mehta, I would like to correct you that LTCG is not chargeable at 15%, its STCG which is chagable at 15%, and that too if it is u/s 111A. (i.e. Trading in shares at recognised stock exchange, paying STT).

Thank you.

1 Like

Vikas (CA) (1135 Points)
Replied 29 June 2011

Originally posted by : Anubhav
	As you are resident individual, you will get slab benefit. It means if your total income other than capital gain is below taxable limit, your LTCG will get reduced by unexpired limit of non-taxable limit. i.e. Max amount not chargeable to tax Rs. 160000 Your other income Rs. 35000 Unexpired limit Rs. 125000 Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000). No 80C deduction is available, as your other income is below taxable limit. And Mr.Pulkesh Mehta, I would like to correct you that LTCG is not chargeable at 15%, its STCG which is chagable at 15%, and that too if it is u/s 111A. (i.e. Trading in shares at recognised stock exchange, paying STT). Thank you.

Fully agree... good answer...

Shrikant Subramanian (Chartered Accountant) (176 Points)
Replied 29 June 2011

Originally posted by : Vikas Vishwakarma
	Originally posted by : Anubhav As you are resident individual, you will get slab benefit. It means if your total income other than capital gain is below taxable limit, your LTCG will get reduced by unexpired limit of non-taxable limit. i.e. Max amount not chargeable to tax Rs. 160000 Your other income Rs. 35000 Unexpired limit Rs. 125000 Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000). No 80C deduction is available, as your other income is below taxable limit. And Mr.Pulkesh Mehta, I would like to correct you that LTCG is not chargeable at 15%, its STCG which is chagable at 15%, and that too if it is u/s 111A. (i.e. Trading in shares at recognised stock exchange, paying STT). Thank you. Fully agree... good answer...

LTCG CHARGED @ 20%

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 29 June 2011

Originally posted by : Shrikant Subramanian
	Originally posted by : Vikas Vishwakarma Originally posted by : Anubhav As you are resident individual, you will get slab benefit. It means if your total income other than capital gain is below taxable limit, your LTCG will get reduced by unexpired limit of non-taxable limit. i.e. Max amount not chargeable to tax Rs. 160000 Your other income Rs. 35000 Unexpired limit Rs. 125000 Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000). No 80C deduction is available, as your other income is below taxable limit. And Mr.Pulkesh Mehta, I would like to correct you that LTCG is not chargeable at 15%, its STCG which is chagable at 15%, and that too if it is u/s 111A. (i.e. Trading in shares at recognised stock exchange, paying STT). Thank you. Fully agree... good answer... LTCG CHARGED @ 20%

AGREED.

Vikas (CA) (1135 Points)
Replied 29 June 2011

Sorry I didn't see the rate ...

Mr. Tushar and Shrikanth are correct...

The rate is 20%...

I apologise...

Vijay Soni (CA final Student) (39 Points)
Replied 29 June 2011

Max amount not chargeable to tax Rs. 160000

Your other income Rs. 35000

Unexpired limit Rs. 125000

Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000).

No 80C deduction is available, as your other income is below taxable limit.

CA Adesh Gupta (Finance Manager) (160 Points)
Replied 29 June 2011

Originally posted by : Anubhav
	As you are resident individual, you will get slab benefit. It means if your total income other than capital gain is below taxable limit, your LTCG will get reduced by unexpired limit of non-taxable limit. i.e. Max amount not chargeable to tax Rs. 160000 Your other income Rs. 35000 Unexpired limit Rs. 125000 Hence you have to pay tax on LTCG of Rs. 375000 (500000-125000). No 80C deduction is available, as your other income is below taxable limit. And Mr.Pulkesh Mehta, I would like to correct you that LTCG is not chargeable at 15%, its STCG which is chagable at 15%, and that too if it is u/s 111A. (i.e. Trading in shares at recognised stock exchange, paying STT). Thank you.