Long term capital gain - tax slab

Hello,

Mrs. X (Aged 64) has income as follows...

Interest Income - 352342/-

Long Term Capital Gain - 4,47,989/- (From sale of inherited residentail house property )

Investment in 80C - Rs. 1,50,000/-

as per my LTCG Tax payable is subject to basic exemption limit.

up to 5 lk income would be taxed @ 10%.

Incremental income of Rs. 150,331 will be taxed @ 20%

so total tax = 20,000 + 30,066 = 50,066 + Cess @ 3% (Rs. 1501)

Total Tax. = 51567/-

please advise if the understanding is correct.

Replies (3)

Basic exemption limit can be adjusted against LTCG only after adjusing against other income. So

IFOS: 352342 - 150000 (80C) - 202342 (out of 3 lacs exemption limit)

LTCG: 447989 - 97658 (balance out of 3 lacs) = 350331

Tax payable @ 20% on 350331 = 70066 + 3% Cess

Originally posted by : Poornima Madhava

Basic exemption limit can be adjusted against LTCG only after adjusing against other income. So

IFOS: 352342 - 150000 (80C) - 202342 (out of 3 lacs exemption limit)

LTCG: 447989 - 97658 (balance out of 3 lacs) = 350331

Tax payable @ 20% on 350331 = 70066 + 3% Cess

 

Hi,

Thanks for reply...Just want to know will tax limit of 10% i.e. for slab 3 to 5 will not be avialable ??

regards,

chirag

 

But for LTCG, so such provision. Flat 20% applicable in this case.

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