#11
and one more question too.

If i am have earned 2 Lakh as capital gain and in same financial year my earning is 1 Lakh. Means total is 3 Lakh (Under 0% tax slab)

In that case no need to pay tax or is it mandatory to pay capital gain, even though my current financial earning is 0.
I presume that Rs 2 Lakhs is Long Term Capital Gain from equity shares/equity mutual fund units......out of that you get Rs 1 Lakh as exumpt capital gain. Add to this is Rs 1 L as your earning making a total of Rs 2 Lakhs which is below the taxable limit so no tax to be paid.....
 

rinku4142

Active Member
#12
Ok means Long Term capital gain can be added in total yearly income?
 

Romeo1998

Well-Known Member
#13
You mean i don' t have to pay any capital gain tax eventhough on 1fst feb 2018 my investment value was 12 Lakh and now its Rs. 18 Lakh. Means 6 Lakh gain since feb 2018.

Are you sure?
on 6 lakhs capital gain, minimum tax will be of rs 25k if there is no other income...
if there is other income, then tax amount will be more...
fair market value is high price of 31st jan, 2018....

i will explain with a small example...
suppose someone buy sbi shares on 2nd feb, 2015 at rs 310 and quantity is 4000
and that person sell all his shares yesterday at rs 464....
so how much is taxable income on this....

your buy price will be highest value of sbi on 31st jan 2018...
we can find it directly from nse website
https://www1.nseindia.com/products/content/equities/equities/eq_security.htm
1656475638988.png

so your buy price will be 316.60
your sell price is 464
so profit is (464-316.6) *4000 = 589600

now when we see income tax schedule 112A, there is no way to show expenses etc the way we show in itr3... so we will deduct expenses directly from sell price....
1656475840448.png



so assuming expenses (brokerage,demat charges, etc) to be rs 10000
10000/4000 = 2.5
so new sell price is 464-2.5 = 461.5
so now your new profit is (461.5-316.6)*4000 = 579600

from 579600, we have to deduct 1L, so taxable CG is 479600 , it will be taxed directly @ 10%

now considering some different scenarios...
( not using any deductions )
if you have no other source of income, then tax on CG income will be ( 479600-250000) *10/100 = 22960

if u have other sources of income as 1 lakh, then tax on CG income will be ( 479600-250000+100000) *10/100 = 32960

if u have other sources of income as 2.5 lakh, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960

if u have other sources of income as 3 lakh, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960
and the remaining 50K will be charged at 5% as 3L fall in 2.5-5L category....that is , 2500, so total tax is 50460


(using deductions 80C 1.5L and 80TTA 10K (savings interest) so total deductions is 1.6L)
if u have other sources of income as 3 lakh which is taxable at normal rates, after deductions it become 1.4 lakhs, then tax on CG income will be ( 479600-250000+140000) *10/100 = 36960

if u have other sources of income as 4.6 lakh which is taxable at normal rates, after deductions it become 3 lakhs, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960
and the remaining 50K will be charged at 5% as 3L fall in 2.5-5L category....that is , 2500, so total tax is 50460


now how to filling this 112A Schedule of ITR2 form...it only look dangerous, but very easy... :pompus:
isin - can get from nse website
name of share unit - sbin
number of shares - 4000
sale price per share - 461.5
cost of aquisition - (310*4000)=1240000
Fair Market Value per share/unit as on 31st January,2018 - 316.6
Expenditure wholly and exclusively in connection with transfer - 0 (if there is no transfer)


i tried to be as accurate as possible, i hope i clear all doubts, let me know if u has any more doubts, good luck :pompus:
 
Last edited:

raju.vzm

Well-Known Member
#15
on 6 lakhs capital gain, minimum tax will be of rs 25k if there is no other income...
if there is other income, then tax amount will be more...
fair market value is high price of 31st jan, 2018....

i will explain with a small example...
suppose someone buy sbi shares on 2nd feb, 2015 at rs 310 and quantity is 4000
and that person sell all his shares yesterday at rs 464....
so how much is taxable income on this....

your buy price will be highest value of sbi on 31st jan 2018...
we can find it directly from nse website
https://www1.nseindia.com/products/content/equities/equities/eq_security.htm
View attachment 47906
so your buy price will be 316.60
your sell price is 464
so profit is (464-316.6) *4000 = 589600

now when we see income tax schedule 112A, there is no way to show expenses etc the way we show in itr3... so we will deduct expenses directly from sell price....
View attachment 47907


so assuming expenses (brokerage,demat charges, etc) to be rs 10000
10000/4000 = 2.5
so new sell price is 464-2.5 = 461.5
so now your new profit is (461.5-316.6)*4000 = 579600

from 579600, we have to deduct 1L, so taxable CG is 479600 , it will be taxed directly @ 10%

now considering some different scenarios...
( not using any deductions )
if you have no other source of income, then tax on CG income will be ( 479600-250000) *10/100 = 22960

if u have other sources of income as 1 lakh, then tax on CG income will be ( 479600-250000+100000) *10/100 = 32960

if u have other sources of income as 2.5 lakh, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960

if u have other sources of income as 3 lakh, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960
and the remaining 50K will be charged at 5% as 3L fall in 2.5-5L category....that is , 2500, so total tax is 50460


(using deductions 80C 1.5L and 80TTA 10K (savings interest) so total deductions is 1.6L)
if u have other sources of income as 3 lakh which is taxable at normal rates, after deductions it become 1.4 lakhs, then tax on CG income will be ( 479600-250000+140000) *10/100 = 36960

if u have other sources of income as 4.6 lakh which is taxable at normal rates, after deductions it become 3 lakhs, then tax on CG income will be ( 479600-250000+250000) *10/100 = 47960
and the remaining 50K will be charged at 5% as 3L fall in 2.5-5L category....that is , 2500, so total tax is 50460


now how to filling this 112A Schedule of ITR2 form...it only look dangerous, but very easy... :pompus:
isin - can get from nse website
name of share unit - sbin
number of shares - 4000
sale price per share - 461.5
cost of aquisition - (310*4000)=1240000
Fair Market Value per share/unit as on 31st January,2018 - 316.6
Expenditure wholly and exclusively in connection with transfer - 0 (if there is no transfer)


i tried to be as accurate as possible, i hope i clear all doubts, let me know if u has any more doubts, good luck :pompus:
Hi,

So mean to say, we have to pay 10% tax on ltcg even though his total gain is between 1 - 4 L? ( Assuming no other income)

For example,
Ltcg : 4L
After removing 1L limit: 3L
After Standard deduction 50k : 2.5 L

So still need to pay 10% tax on this?


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Romeo1998

Well-Known Member
#16
Hi,

So mean to say, we have to pay 10% tax on ltcg even though his total gain is between 1 - 4 L? ( Assuming no other income)

For example,
Ltcg : 4L
After removing 1L limit: 3L
After Standard deduction 50k : 2.5 L

So still need to pay 10% tax on this?


Sent from my Realme1 using Tapatalk
if there is no other income, and LTCG is 4 lakhs, then taxable capital gain will be (400000-100000-250000) = 50000
and tax will be 10 % of it, so 5000 :)
 

raju.vzm

Well-Known Member
#17
if there is no other income, and LTCG is 4 lakhs, then taxable capital gain will be (400000-100000-250000) = 50000
and tax will be 10 % of it, so 5000 :)
Ohh, so standard deduction 50k won't be applicable here.

So if no other income is there no need to pay tax till 350000 ltcg. Got it.

Thanks

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travi

Well-Known Member
#19
if there is no other income, and LTCG is 4 lakhs, then taxable capital gain will be (400000-100000-250000) = 50000
and tax will be 10 % of it, so 5000 :)
If one has no deductions, then you can change the math by going with new regime :)
4.99L + 1L LTCG = 5.99L

Note : New IT regime does not have senior citizen higher slab etc, its same for all.
For senior citizen, in old regime, under 80TTB they can cover upto 50k most if not all forms of interest.
 
#20
This tax query is for a next door lady, a senior citizen, aged 63+ (husband is 68+ and is bed ridden), with 2 grand sons (of deceased son)
She has no income, though some from bank savings. She has a PAN but has never filed ITR.

Her other 2 sons and a daughter send her some money monthly, to meet household and medical expanses and for education of her grand sons. She received some 4.5 lakhs in FY21-22. One of her distant relative in a meet, has frightened her, saying that it is mandatory for her to file ITR, as she is receiving more than 3 lakhs in an year.

The query is, whether it is mandatory for her to file ITR for the amount she receives from her sons/daughter.
 

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