How is the income tax for long term capital gain of 6lakh is calculated ? From tax calculation website i saw it somewhere around Rs.15600.
I am curious to understand how it is calculated
Assuming 6 lakh LTCG and no other income…
1 lakh deduction on LTCG ,
3 lakh slab basic exemption (new regime ).
10% tax on balance = 20k rupees
If you have FnO losses, it will further set off LTCG gains.
However , section 87-a rebate isn’t applicable on LTCG
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Hey @Nithin_Mohan,
LTCG are taxed at a special rate of 10%. However, you do get a ₹1 lakh exemption in case of LTCG and tax needs to be paid on gains in excess of ₹1 lakh.
The tax liability depends on other sources of your income as well as that would determine if you get the basic exemption of ₹2.5L.
Here’s a detailed read that might help!
any blogs or tips to save on tax : ltcg to be specific for tax savings like deductions like donating to charity etc ?
Hey @lotiha6335,
You can not claim Chapter VI-Deductions like 80C, 80D, 80G (deduction for donations) etc. on capital gains. In the case of LTCG you do get an exemption of ₹1L, however, gains above that would be taxable at a flat 10%.
Here’s a read that might help:
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