Tax rate on Long Term Capital Gains

Q. If my only income is property (NormalMale)L.T. Gain-3.5 lac for Ast. Y.09-10,what rate be taxed.Whole @20 or for 3.00-lac@10% & for Bal.50000/-@20%? – Mohit gupta

Ans. Dear Mohit, Here I assume the gain amount of 3.5L Rs. is indexed gain amount. If not calculated already plz. calculate the same. Now comes the question of tax rate on ur indexed LTC gains. Plz. note as ur only source of income is this LTCGain amt. U may set off ur basic exemption limit of 1.6L Rs. so u w’d have to pau Tax on remaining Gain amount = 350000-160000 = 190000 Rs.

As the Indexed LTCGs are taxed @ 20.6%, for ur LTCG the Tax = 190000 * 20.6% = 39140.



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