LTCG on equity shares/mutual fund units below 1 lakh Rs

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CA Finalist
203 Points Posted on 25 August 2021

As we know after introduction of 112A, LTCG below 1 lakh is tax free. But how do we disclose it in ITR?

When I fill schedule 112A it calculates my LTCG and shows a taxable amount of Rs 1221. This 1221 actually gets carried forward in tax calculation and tax is calculated on it as special rate tax.

However, as we know there should be ZERO tax on it. So how to show it? 

I don't think its a software glitch as the same is seen in excel utility of AY 20-21 & online utility of AY 21-22.

Experts please guide.

 

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On 25 August 2021 at 16:26 Report
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Quick Summary
This discussion addresses a common query regarding the disclosure of Long Term Capital Gains (LTCG) below £1 lakh in Income Tax Returns (ITR). While LTCG below this threshold is tax-free under Section 112A, users are encountering issues where it appears as a taxable amount in ITR software. The thread offers potential solutions involving specific schedule completions and confirmations within the ITR utility to ensure the gain is correctly reported as zero tax.

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81 Points Posted on 25 August 2021
Amount of rebate allowed u/s 87A
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On 25 August 2021 at 18:09
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CONSULTING
1322 Points Posted on 25 August 2021

In the last 5 weeks, this has happened to me three times that my LTCG below 1 lakh was added into the gross total income. This is a glitch. It will go away in a day or two days max. 

But be sure you must complete Schedule BYLA, CFLA and CFL and press Compute Set Off button. The schedule there then checks if the LTCG for current year. Moreover, you must include Schedule Special Income and press Confirm there. 

Only then the ITR may deduct the LTCG below Rs 1 Lakh.

I have no clue why rebate u/s 87A is coming into picture.

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On 25 August 2021 at 19:58

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