STCG and LTCG Taxation

commercial or industrial property is not allowed ?

hw to save tax on the capital gain on the sale of commercial/industrial property ?
sale gain on the sale of commercial/industrial property can only be set off via buy of commercial/industrial property ?

can STCG and LTCG , on sale of property both , can be set off as per section 54F , 54 ec ; 54ee ?

Hello @HIREiN
The exemptions of Capital Gains are available based on the nature of capital asset sold and the asset invested into. The answer above pertains to user’s query on sale of a residential house property where he can claim deduction under Section 54F and also other sections with a generic condition of any long term capital asset sold.

You can read more about capital gains exemptions here - Capital Gain Exemption

This article comprises of detailed explanation with nature of asset sold and the nature of asset to be invested into alongwith the mandatory conditions to be fulfilled.

What amount is exempt on gains from sale of my agricultural land??

Hey @Joe_Fernandes

Exemption under section 54B of the Income Tax Act is available on Capital Gains on sale of agricultural land and purchase of new agricultural land.

The amount of Exemption will be least of the following -

  1. The Cost of new Agricultural land,
  2. The Capital Gains on the sale of Agricultural land.

Hope this helps!

@Kaushal_Soni @Divya_Singhvi @Laxmi_Navlani @AkashJhaveri can you?

If the aggregate income is less than 5Lakhs and when we add the STCG/LTCG the net income goes above the 5 Lakh limit for tax rebate.

In this scenario how the rebate is applicable

Aggregate income - 4.5L
Total Taxable income- 5.5L

Do I need to pay tax for 4.5L and 15% STCG or Only 15% STCG , Rebate applicable for 4.5L


If your Net Taxable income is below 5 lakhs you can avail rebate under section 87A.

Net Taxable is income = Income from all sources(inclusive of Capital Gains) - Deductions
Since your Net Taxable income is 5.5 lakhs you cannot avail rebate under section 87A.

Therefore, you’ll have to pay tax on 4.5 lakhs at slab rate and 15% on STCG.

Tax Liability = 5% on 2 lakh(4.5-2.5) + 15% on 1 lakh = INR 25000

You can use this tool provided by the Tax Department to calculate your tax liability.

Hope this helps :slight_smile:

money received form wife as gift ; and/or ; money received from wife as loan :

are these to be added to the gross total income ?

@Sakshi_Shah1 can you help ?


Gift received from relatives is exempt from tax. Definition of relative includes spouse too. Thus, gift from wife should be reported as exempt income in the ITR. It would not be included in the gross total income and tax would not be calculated on such income.

Loan received from wife is not an income and would not be a part of gross total income. However, if such money is used for business, it should be reported as an unsecured loan in your balance sheet if you need to file ITR-3.

Read more - Tax on Gift: Rules and Exemptions As per Income Tax Act in India

Do we have to provide the details in ITR even if LTCG is less than 1 lakh?

Hey @Sofiyah_Valiante,

Long term capital gains below Rs. 1 lakh threshold has to be reported in order for the Income Tax Department to know that a specific amount of exemption has been claimed on LTCG from equity investments.

1.Should I pay taxes for the Profits which are still in the trading account of the broker and “wallets” of MF aggregators…and have not been transferred into my Bank account.
My logic is to reinvest the profits and transfer back into my bank account after a period of 5-7 years.
So in that 5-7 years , I am not realizing any profits(ie, nothing comes into bank account for me to spend,rather, money goes from my bank account (obtained via salary for which I have filed ITR-1) )

2.What do I do if there are losses for a FY under the same scenario.
(All happening in trading account and “wallets” of brokers and MF or Investing service providers)

1 Like

Thank you for your time

Hey @Aby_Math ,

For investor, capital gain taxes are levied when capital asset is transferred or sold. If you have sold or transferred the investments to actual buyer then capital gain would be applicable irrespective of the money credited into bank account or wallets. But, if only unrealised profit is incurred without transfer or sell the investment then capital gain taxes will trigger when you actually sell or transfer the investments.

The scenario will also remain same in case of losses.

For more insights, you can read below article:

I hope, it helps :slightly_smiling_face:

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Thank you Kaushal.You are a godsend. :raised_hands:

Assuming I have a Salary + LTCG for a FY and I am an Individual retail investor,

Do I have to pay Individual Income Tax on the income I get from LTCG, after I have paid for for LTCG Tax?

or should I assume that after I pay taxes for LTCG, that income head is taken care of and can be ignored, and then attend to the taxation of the income from the salary head?

If the 1st scenario is true, isn’t it double taxation?

Hey @Aby_Math ,

Taxpayer has to pay taxes on any income arising under the head of salary, house property, income from other sources, capital gain and business & profession. Taxes are to be calculated one time on the earned or generated income for relevant assessment years.

In your case, if you have computed or paid taxes on LTCG income then you don’t need to pay it again individually. Indeed, rest of your tax liability shall be computed ignoring LTCG income, considering you pay or compute taxes already.

You can refer below tax calculator to determine your tax liability:

I hope, it helps! :slightly_smiling_face:

1 Like

Thank you Kaushal. It really helps.

I have a question about STCG.
Suppose STCG is the my only source of income and I have an annual income of 5 lakhs through this. Will this be still taxed at 15%?