Income Tax on only Capital Gains (NO Salary income)

Folks,

I had a capital gains of 1,20,000 /- during 2010-2011 & no salary income. When i tried to e-file using the PDF utility provided by the incometaxindia.gov.in website, it calculated a tax of 16000 /- in the PARTB TTI 1b column for "Tax payable at special rates".

This surprised me since my total income is less than 1,6 Lakhs, i should not be taxed at all. I want to know if what the PDF utility calculated was correct.  That is, if

a) THe total income is less than 1,60,000 /-

b) The total income is comprised only of capital gains taxed at special rates,

Should there be any income tax at all? I would greatly appreciate any replies since i am already late in filing thinking that i am below the taxable limit,

Thanks in advance,

Regards

Replies (1)

Dear Frowdow,

 

There should not be any tax liabilty, since the total Income comprising only of capital gain (taxable at special rate) is less than basic exemption limit of 1.6 Lakhs. However deduction under chap VIA is not available against STCG.

I have tried the same in ITR template of Income tax Department, it is calculating properly. 

 

https://incometaxindiaefiling.gov.in/portal/individual_huf.do

for downloading form

Regards

 Hitesh

 

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