What will the calculation if the total income after excluding long term capital gains if less than the maximum amount?
In case the total income after excluding long term capital gains is less than the maximum amount chargeable to tax , presently, Rs 50, 000/- in case of individuals, HUFs etc. Then the long term capital gains has to be reduced by the amount by which the total income falls short of themaximum amount Rs 50, 000/-. Example: You have long term capital gains of Rs 75, 000/-. You have Income from other sources as Rs 25, 000/-. In this case tax on Rs 25, 000/- will be Nil since it is less than the maximum amount that is non taxable. Tax on long term capital will be @20% on Rs (75, 000 – 25, 000) i.e. 20% of Rs 50, 000. Total tax would be Rs 10, 000/-.
