I have LTCG from MFs less than 1 lakh

I have LTCG from equity MFs in FY 19-20 amounting to 32k and STCG of 27K on debt/liquid MFs. I read that that LTCG upto 1 lakh is exempt under IT. But I am unable to get this benefit. The LTCG on equity MFs is also being charged. Someone please let me know the sheet and serial number in ITR2 where this LTCG needs to be filled in to get the exemption. I have no trading in the account.



Please fill the details under Schedule 112A in ITR-2. The exemption gets automatically calculated. Pls use the latest utility.

What is meant by “gets automatically calculated” ? Do you mean by the ITR-2 Java tool ?


Once you fill the following necessary details in Schedule 112A; the exemption upto Rs 1 Lac gets automatically applied (calculated).

Do you mean by the ITR-2 Java tool ? Yes, I m referring to Java tool.

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Thank you. I downloaded the latest excel utility. Will post screenshot tomorrow. Please advice.

Hello and thanks again. I got it checked by a CA who said that the computation is correct and that I am getting LTCG exemption. So I will go buy his word and pay the remaining tax plus interest thereon.


Similar to TDS, will the LTCG/ STCG tax also will be deducted at source ? or do we need to file the LTCG/ STCG gains as part of ITR n pay the relevant tax ?

I am a new investor, please help.


LTCG or STCG tax will not be deducted at source; we need to declare the gains at the time of filing the return and pay tax accordingly.

STCG is taxed @ 15%.
LTCG exceeding Rs 1 Lacs is taxed @ 10%.


I too understand that @San78 is correct. Rather my understanding is the same as his response.

With this budget, I believe all these will be auto filled when we file our ITR.

Hey @Venkatesh_Selva

Tax on Capital gains, in form of TDS, is not deducted at source be it short term or long term. You need to include all your incomes when calculating your advance tax liability such as Capital gains, dividend, business income from trading, etc during the financial year.

If your tax liability is above INR 10,000, you are liable to pay advance tax during the financial year in 4 different instalments.

  • 15th June - 15% of the tax liability
  • 15th Sept - 45% of the tax liability
  • 15th Dec - 75% of the tax liability
  • 15th March - 100% of the tax liability

If you are eligible to pay advanced tax but have not paid advance tax, a penalty will be applicable u/s 234B and 234C. You can claim the tax credit for the advance tax paid when filing your ITR. Capital gains on listed equity shares of a domestic company are taxed at:

  • LTCG is taxed at 10% above INR 1 Lakh
  • STCG is taxed at 15%

Hope this helps! :slight_smile:


Thanks for the answer.

I have another query here. If my LTCG <1L but >10k, do I need to pay advance tax?

Kindly help. I am new to taxation and trying to be a tax compliant citizen.


If TAX on your total income including LTCG is more than 10K, you need to pay advance tax. [irrespective of whether LTCG is more than 1 Lacs or not]
Eg :
A] Interest Income is 6Lacs and Tax on such Interest Income(as per applicable slabs) is 32.5K.
B] LTCG is 90K. There is no tax as LTCG upto 1Lacs is exempt.
You need to pay advance tax as your tax liability is more than 10K.

Hey @Venkatesh_Selva

Even if your LTCG is less than INR 1,00,000, you are liable to pay advance tax if your overall tax liability is more than INR 10,000. However, if your long terms capital gains are not more INR 1,00,000 then there will be no tax liability on that gains.

Hope this helps! :slight_smile:

Hi @Quicko,

I have LTCG gains of 1.88 Lakhs on my MF portfolio consisting of 6 funds. Out of this I want to redeem a fund which has LTCG of 65K.Does the LTCG of 10% apply even for this sale of MF that has 65k LTCG?

LTCG is paid on the realized gains over and above 1 Lacs.
Upto 1 Lacs - it is exempt.
No need to pay tax on 65K LTCG earned.

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Hi @sudheer_kumar,

Since the LTCG is less than INR 1 lakh, it will be exempt from income tax.
However, you should report the gains when filing your ITR.

Thanks @San78 @Quicko so it means the 10% LTCG tax is on per scrip/fund basis.

@sudheer_kumar it is for all the gains combined… but in your case, you haven’t sold all of them… You just sold part of them to give you 65k profit… Only the profit which u were able to realize, is considered…

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Hi @sudheer_kumar

The tax rate of 10% shall be applied over the aggregate realized LTCG above INR 1 Lakh.