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Longterm Capital Gain for Sr Citizen

16 January 2021

HI,

My mother (72 yrs) recently sold her ancestral property and she received a shared of Rs. 2.6 lacs. Is she subjected to LTCG ? If so how can that be avoided ?

Thanks

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22 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 16 January 2021

No, your mother will not subject to LTCG as she is senior citizen and basic exemption limit for senior citizen is 300000 rupees

Kapadia Pravin (17249 Points)
Replied 16 January 2021

Any gain Long term or short term is taxable. So LTCG by your mother is taxable along with other sources of income. To avoid, there are sections giving benefit depending upon type of capital assets.

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 16 January 2021

But if his mother has no other sources of income then her income is not taxable

Shomik Bhattacharyya (9 Points)
Replied 16 January 2021

No other source of income.

Krishna Chaudhary (Accountant) (4531 Points)
Replied 16 January 2021

Capital gain will taxable at 20% after claiming basic exemption limit

2 Like

Shomik Bhattacharyya (9 Points)
Replied 16 January 2021

How much is the basic exemption limit?

Anjali lakra (473 Points)
Replied 16 January 2021

For senior citizen, basic exemption limit is Rs. 3,00,000. Therefore, your mother is not required to pay any LTCG.

sabyasachi mukherjee (25988 Points)
Replied 16 January 2021

The querist has not mentioned any dates which is essential.
Long term capital gain and short term capital gain has seperate reporting in itr.
In this case the assesse has not mentioned the dates which is essential.

Shomik Bhattacharyya (9 Points)
Replied 16 January 2021

What dates do you need?

sabyasachi mukherjee (25988 Points)
Replied 17 January 2021

Whats the age of your mother?
In your mother's case it is not relevent since his income has not exceeded his max. amt.

Shomik Bhattacharyya (9 Points)
Replied 17 January 2021

I have already mentioned her age as 72

sabyasachi mukherjee (25988 Points)
Replied 17 January 2021

Ok.
Since it is long term capital gain.
you have to pay tax. file returns and get refund.

Kapadia Pravin (17249 Points)
Replied 17 January 2021

Share of property received is 2.60 lakhs. From that deduct indexed value of property. You get long term capital gain amount. In the absence of other income sources, yout such income will remain below 3 lakhs threshold limit and hence tax payable will be nil. No tax.