LTCG only; No salary

Taxation
1

If I have LTCG (equity) of 4 lakhs, but no other income, what is the final tax?

LTCG exception = 1 lakh

Basic exception = 2.5 lakh or 3 lakh as per regime.

So my net tax is 0 @Quicko ?

2

https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx

Use this tax calculator from official website
It has all the fields

3

Thanks a lot!

4

Hi,

If you file under the new tax regime, there will be no tax liability.

1 Like
5

Not only for this, aggregate all other incomes from different streams - apply appropriate exemptions and then based on the final figure (net taxable income) you will pay taxes

eg. STCG, LTCG, interest income etc etc

1 Like
6

@Quicko Are you sure? Is it specific to new regime or in old regime also one can adjust LTCG gain under basic exemption? I read somewhere this - “When you have no other income besides LTCG, the basic exemption limit doesn’t directly reduce your LTCG tax liability. LTCG is taxed as a separate head of income.”

7

If you read somewhere, you should quote the source

Both ltcg and stcg can be adjusted with basic exemption limit for resident individuals/HUF.

Also, other income like salary, interest etc is adjusted before capital gains

8

Hey @vimox.shah,

As rightly mentioned by @Chirag1,

The basic exemption is available for both LTCG and STCG for resident individuals/HUF. Only in the case of NRIs, it is not available.

Moreover, the incomes taxable at slab rates are adjusted first against the basic exemption.

Hope this helps!

2 Likes
9

If There is LTCG only which is below 1 lac and overall income is below basic exemption.

Does one has to file ITR ?

10

It is always wise to file itr to be on the safer side. I believe it is not mandatory but recommended?

11

Hey @Private,

Its not mandatory to file the ITR if income is below the basic exemption limit. However, as rightly mentioned by @VRV, there’s no harm in filing one.