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

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.

 

Replies (2)
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.

Amount of rebate allowed u/s 87A

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details