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Long Term Capital Gain (Less than 1 Lakh Exempt or Taxable)

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Rudrajit Paul

21 Points Posted on 28 September 2021

Respected Sir/Madam,

I am having trouble relating to Long-term Capital Gain.

I can't figure out how to show my Long-term Capital Gain from sale of shares in my income tax return. It is lower than 1 Lakh Rupees and hence exempt from taxation. But if I show it under section 112A the form asks for information about accrual/receipts of capital gain in 5. Long-term Capital Gains taxable at the rate of 10%. So my question to you is how else I can show it or can I show it in Schedule Exempt Income.

My knowledge of Capital Gain maybe incomplete and any information or updates are welcome.

Replies (4)

Quick Summary

This discussion clarifies how to report Long-Term Capital Gains (LTCG) under Rs 1 Lakh in your income tax return. Although exempt from tax, it must be declared. The correct method is to use Schedule 112A, even if the gain is below the exemption limit. The tax utility will automatically account for the Rs 1 Lakh exemption. LTCG is not considered exempt income and should not be reported in the Exempt Income schedule.

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 28 September 2021

Capital gains are generally included in taxable income, but in most cases, are taxed at a lower rate. ... Short-term capital gains are taxed as ordinary income at rates up to 37 percent; long-term gains are taxed at lower rates, up to 20 percent.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 28 September 2021

Fill 'Schedule 112A". There no other option. If purchase is after 31.01.2018, fill the data combined, otherwise individually.

Finally the utility will take care of 1 lakh exemption.

veerendar singh

tax consultant

1829 Points Posted on 28 September 2021

Ltcg is not exempt income. dont show in schedule EI

Rammohan

163 Points Posted on 30 September 2021

You may fill in the details of accrual of capital gains according to the 4 periods mentioned in the schedule. This needs to be done for advance tax purposes, but does not affect the exemption of Rs 1 lac LTCG. The total LTCG shown in Sch 112A should be the same as the total of the items in the accrual of capital gains schedule.