Capital gain querry
sharfas (article clerk) (55 Points)
30 May 2016
whether NRI will get basic exemption if his total income is only from long term capital gain(Land)
Manish Jain
(Chartered Accountant)
(119 Points)
Replied 30 May 2016
Yes. He will not be liable to pay tax on long term capital gains upto the unexhausted basic exemption limit. If he has any other income, the basic exmeption limit will be utilised for such other income first and then the unexhausted part will be utilised for long term capital gains.
Manish Jain
(Chartered Accountant)
(119 Points)
Replied 30 May 2016
Refer Secton 112.
SECTION 112. (1) Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is chargeable under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,-
(a) in the case of an individual or a Hindu undivided family, [being a resident,]-
(i) the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income ; and
(ii) the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent :
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
