Is basic exemption limit available for long term capital gain?

Long term capital gain is the profit earned after selling an immovable asset after 24 months of owning it. But did you know you can get an exemption even if you earn some profit? Let’s discuss the long term capital gain exemption limit.

The Capital gains or the earnings from the holding of equity or any kind of intangible or tangible asset for a longer period see a rise in its own value according to the latest market trend attract a tax liable to be paid along with your regular income tax if any. 

But of course, there is a certain long term capital gain exemption limit based on your annual income and the age group tax payer lies in.

Govt. has mandated some exemptions to the tax cuts on your earnings if your annual income falls below a certain predetermined level, these are the long-term capital gain tax exemption limit and are broadly classified based on the age group of the taxpayer, mentioned as follows:

1. Indian residents from age 80 years or above will be exempted if they earn below Rs. 5,00,000 a year

1. Indian residents whose age lies between 60 to 80 years will be exempted from long-term capital gains tax if they are earning Rs. 3,00,000 annually. 

1. For individuals below 60 years of age, the exempted limit is Rs. 2,50,000 per annum. 

1. Hindu Undivided Families can enjoy long term capital tax exemption if the annual income of the family is under Rs. 2,50,000. 

1. For NRI, this exemption limit is Rs. 2,50,00 irrespective of their age bracket

Individuals are not liable to earn any tax deduction under Section 80C to 80U from long-term capital gains tax in India.

I hope you understand what is the long term capital gain exemption limit.

Read more”

You are required to pay a capital gains tax when you earn a profit by selling capital assets like a bond, vehicle, stock, residential plot, and even collectibles like artwork. There are two types: long-term and short-term capital gains tax. A long-term capital asset is a capital asset that is held by the taxpayer for a time of over 3 years immediately preceding the transfer date. Is basic exemption limit available for long term capital gain and at what limit LTCG is tax free?  Let’s find out:

The basic exemption limit refers to the income level up to which an individual does not have to pay any tax. This means that there won’t be any tax liability in case your income is below the basic exemption limit. The basic exemption limit in the case of an individual for the F.Y. 2019-2020:

• The exemption limit is Rs. 2.5L for HUF (Hindu Undivided Family).

• The exemption limit is Rs. 2.5L for non-resident individuals irrespective of individuals’ age.

• The exemption limit is Rs. 2.5L for a resident individual under the age of 60 years.

• The exemption limit is Rs. 3L for a resident individual who is 60 years old or older than 60 years but younger than 80 years.

• The exemption limit is Rs. 5L for a resident individual whose age is 80 years or older.

I hope now you know what is the exemption limit for long term capital gain.