When you have a capital gain from capital assets you are liable to pay taxes. Before discussing LTCG tax free limit, I am going to share a little bit of information on Long term capital gains, the taxability around them and finally exemption on LTCG. Let us get right into it.
So long term capital gain is profit earned by selling assets such as residential property, vehicles, bonds, stocks, etc. which were held for more than 12 months to 36 months.
How much tax is levied on LTCG?The long term capital gain tax is calculated at the rate of 20% + surcharge and cess. However, if the long term capital gains earned by selling securities of more than Rs. 100000 or returns earned by selling securities listed on a recognised stock exchange in India, zero coupon bonds or mutual funds on or before 10 july 2014, then the applicable tax rate is 10%.
Till what limit LTCG is tax free?The only tax exemptions in LTCG are defined for the following categories of tax payers for the year 2019-2020:
Resident Indians aged 80 years or above to be exempted if their annual income is below Rs. 500000.
Resident Indians aged 60 to 80 years will be exempted from LTCG tax in 2021 if they earn Rs. 300000 annually.
Limit for tax free LTCG for individuals of 60 years or younger is set at Rs. 250000 per annum
LTCG tax free limit for
HUF is when the annual income is upto Rs. 250000
There is no tax deduction under Section 80C from LTCG in India for Individuals.
Authors Of The Question
What is the limit for LTCG to be tax free?
Kartik
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3 Year
2021-09-16T15:06:12+00:00 2021-09-17T11:21:46+00:00Comment
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