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LTCG QUERRY

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Tushar Kalid

Audit Assistant

44 Points Posted on 22 December 2021

MY INCOME OTHER THAN LTCG (112A) IS 560000, LTCG (112A) IS 70000 AND DEDUCTION UNDER SEC. 80 IS 80000. . MY NET TAXABLE INCOME IS 570000. IS MY INCOME IS TAXABLE? AS LTCG IS EXEMPT BELOW 100000, AFTER DEDUCTING LTCG AS EXMEPT TAXABLE INCOME COMES TO 490000. SHOULD I LIABLE TO PAY TAX?

Replies (3)

Quick Summary

This discussion clarifies tax liability concerning Long Term Capital Gains (LTCG) under Section 112A. It addresses a query where an individual's income, including LTCG, might be below taxable thresholds. The consensus is that while LTCG below £1 lakh is exempt, deductions under Section 80 cannot be claimed from LTCG itself. However, after applying exemptions and potential rebates like Section 87A, the net tax liability could be nil if the total taxable income falls below £5 lakh.

CA Aakarsh Jain

10436 Points Posted on 22 December 2021

Your calculations are wrong..
Your total income after sec 80 is 550000 (other then LTCG 480000 and LTCG 70000) as deduction u/s 80 is not allowed from LTCG. So you are liable to pay tax. But if you want to save your taxes check your inbox.