Hi,
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! 
Thank you Kaushal. It really helps.
Hi
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%?
STCG would be taxed in the following manner:
If you’re a resident as per Income Tax Act and have no other incomes, you can claim shifting benefit. Thus, taxable income = STCG - basic exemption limit. This income would be taxed at 15% u/s 111A.
To calculate tax liability, use our Income Tax Calculator
https://tools.quicko.com/income-tax-calculator/
Hello @TeamQuicko
I have some amount sitting in CGAS account and wanted to confirm how that amount can be effectively used.
Let’s say for example - I have 50 Lac in CGAS schema and I purchase a house for 35 Lac. What happens to the remaining 15 Lac amount?
Can I transfer some amount(let’s say 10 Lac) out of 15 Lac into my savings account in the name of Registration/Stamp Duty, Brokerage, Lawyer, Renovation costs, etc. and then withdraw it from my savings account to use it for these services?
And then transfer if any remaining pending amount in CGAS (in this case 5 Lac) to my savings account and pay 20% tax on this amount.
And the interest amount which is already tax paid during ITR filing, can that also be transferred to savings account?
So, just want to confirm if the CGAS amount is used strictly for the house purchase or it can be used for other additional services occurring during house purchase. And if any proofs needs to be shown to the bank to transfer the amount to savings account to use for these services.
Thanks.
Hi @Nyk,
The combined amount for 35L and 10L (paid towards expenses) will be accounted for towards the cost of acquisition.
For the used amount you will be required to pay the applicable tax.
You should also maintain the relevant proofs in case there is a scrutiny from the ITD
I would like to calculate LTCG on sale of land property. what is the maximum allowed commission paid to agent , what is maximum allowed stamp duty paid. do i need to furnish any supporting documents for claiming these expenses? please clarify.
Hi Team, I have salary income and capital gains. I am filling ITR2. Is that correct ?
Also, while filing ITR2, I have filled 112A but it’s adding the profit from LTCG to taxable income even though LTCG is less a than 1 lakh. How to fix this ? Please help.
Thanks,
A
Last financial year I sold some shares at loss that I had purchased in 2016. Now it is eligible for long term capital loss. I wish to know during filing ITR whether I need to enter its details scrip wise or I can just club it with other long term capital losses/ gains arising from selling shares bought after January 2018.
Hi @TeamQuicko,
I need some guidance on LTCG. I recently sold a residential plot in Jul 2021 after holding it from Jan 1997 and I intend to buy another asset in a few months. Please advise -
Do I have to park the funds in CGAS or any other scheme to avail tax exemption this year or do I have time until the ‘2 year from sale’ timeline is met? Funds are currently in savings account. Additionally, if I have to invest in CGAS or similar, can I do so now (before 31 July 2022) and still be eligible for tax exemption? Banks are insisting that this must be done within 6 months of sale but I am not sure if they are evaluating all possibilities of sections 54/54F or if they are referring only to sections 54E/54EA/54EB.
While calculating indexed value of acquisition, should I first calculate the indexed value from 1997 to 2001 and then 2001 to 2021? The current base of 100 in the cost inflation index list seems to start from 2001. Please guide how the calculation from 1997 to 2001 must be handled in this situation.
Thank you.
My Gross salary is 7,00,000 and after deductions of standard deduction, section 80C and Section 80ccd(1B), my salary becomes 4.5 lakh. I also invest in Equity delivery stocks.
Net taxable income= 4,50,000
STCG = 50,000
Firstly, Do i need to pay tax 15% stcg tax on 50,000 which will be 7,500 ?
Secondly, what will be the total tax which i need to pay ?
Thirdly, can i consider total taxable income 4,50,000 + 50,000 = 5,00,000 that means no tax upto 5L taxable income ?
Note: consider rebate u/s 87A
Please reply if anybody knows, it is very important for me
Hello,
There is no maximum limit mentioned for claiming of expenses, but the expenses should be of reasonable amount. If the assessing officer finds your expenses as unreasonable, then he can ask for proofs as well as clarification for the same.
You do not have to furnish any documents to the IT Department at the time of filing of ITR. If any scrutiny comes, at that time documents will be asked to be furnished.
Hope this helps!
Hello @Jayanth,
Yes, you’ll have to park uninvested capital gain funds in CGAS before due date of furnishing the ITR for F.Y 2021-22, you can refer to Section 54F(4) for better clarity.
You should consider the Fair market value for the property as on 01/04/2001 and then calculate indexation accordingly.
Hope this helps!
Hello @Kuldeep_Singh,
Yes, short term capital gain is a special rate income chargeable to tax at 15% flat rate irrespective of your tax slab. So, tax on 50k STCG will be INR 7500/- only.
Total tax liability in your example shall be INR 17,500/- + H.E.C @4%
As your net taxable income is upto INR 5,00,000/- you will get rebate u/s. 87A of INR 12,500/- so net tax payable shall be INR 5,000/- + H.E.C @4%
Hope this resolves your query!
Hello @arjunkmb,
Yes, as you have salary income and capital gains ITR form 2 will be applicable. So your LTCG shall form part of your Total headwise income but tax won’t be calculated on the same, you’ll get exemption u/s.112A upto INR 1,00,000/-.
Hope this helps!