LTCG on residential property sale - Rebate?

Dear Friends

 

I sold a property for Rs. 48 lakh and its cost was 40 lakh, earning a LTCG of 8 lakh.

I saw some reels on instagram saying that no tax needs to paid on LTCG as there is some ruling of Appellate Tribunal saying that rebate available under section 87 is applicable to all income including LTCG.

Is that true? How shall i proceed?

 

Regards

Shivani

Replies (1)

Legally, the Section 87A rebate is fully allowable against property LTCG (Section 112) since the restriction in the law applies only to equity LTCG (Section 112A). For AY 2026-27, the rebate covers incomes up to ₹12 Lakhs in the New Tax Regime. File the return declaring the property gain; if the portal software glitch denies the rebate, use judicial precedents (ITAT rulings) to file a rectification or appeal against any erroneous automated tax demand.

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