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Tax on LTCG if total income less than 10 lakhs?

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Jayesh

Proprietor

141 Points Posted on 23 March 2021

In HUF account, total income is 6.5 lakhs (1 lakh interest and 5.5 lakhs LTCG post indexation). What will be the tax if no 80C deduction? Will entire 5.5 lakhs get taxed at 20% or will the assesse get to use the tax slabs in calculating tax on total income of 6.5 lakhs?

Replies (3)

Quick Summary

This discussion clarifies the tax treatment of Long Term Capital Gains (LTCG) when total income is below 10 lakhs. It explains that the basic exemption limit can be applied against interest income first. The remaining taxable income, including LTCG, is then subject to the applicable tax rate, typically 20% post-indexation, after deducting the basic exemption.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 23 March 2021

Your total income is 650000 rupees.
interest income is less than basic exemption limit.
then from total income basic exemption limit shall be deducted 650000 minus 250000 shall be 400000 rupees
20 percent tax shall be charged on 400000 rupees shall be
80000 rupees + cess 4 percent will be 83200 rupees total tax liability