Section - 112,
Income-tax Act, 1961
[Tax on long-term capital gains.
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 :
Provided that
where the total income as reduced by such long-term capital gains is below the
maximum amount which is not chargeable to income-tax, then, such long-term
capital gains shall be reduced by the amount by which the total income as so
reduced falls short of the maximum amount which is not chargeable to income-tax
and the tax on the balance of such long-term capital gains shall be computed at
the rate of twenty per cent ;
(b)
in the case of a non-resident (not
being a company) or a foreign company,—
(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 its
total income ; and
[(ii)
the amount of income-tax calculated on long-term capital gains [except where
such gain arises from transfer of capital asset referred to in sub-clause
(iii)] at the rate of twenty per cent; and
(iii)
the amount of income-tax on long-term capital gains arising from the transfer
of a capital asset, being unlisted securities, calculated at the rate of ten
per cent on the capital gains in respect of such asset as computed without
giving effect to the first and second proviso to section
48;]]
Conclusion
Resident
Indian and Resident HUF
can adjust LTCG against the basic exemption limit.
A
Non-Resident Individual or Non-Resident HUF cannot adjust LTCG against the basic
exemption limit. Therefore, in the case of NRI even if the taxable income is
NIL and he has booked long term capital gain against the capital asset. NRI has
to pay LTCG tax at the rate depending on the asset class.
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