TaxTMI 
TaxTMI 
Tax on Long Term Capital Gains - (New) Section 197 / (Old) Section 112
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....-term capital gains, had the total income, as so reduced, been his total income; and • (b) income-tax calculated on such long-term capital gains at the rate of 12.5%. Benefit of Basic Exemption Limit to Resident Individuals and HUFs [Section 197(2)] • If a resident individual or resident HUF has taxable income (excluding LTCG) below the basic exemption limit, the unutilized exemption limit can be adjusted against LTCG. • the tax on the balance of such long-term capital gains shall be computed at the rate as referred in section 197(1). • Sub benefit not available to non-resident. Grandfathering Relief for Land and Building Acquired Before 23 July 2024 [Section 197(3) & Read with ....
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....ike residential properties, agricultural land, bonds, or shares, based on specific conditions and timelines. • Special exemptions include: • Schedule III (Table Sl. No. 18): Compulsory acquisition of urban agricultural land. • Schedule III (Table Sl. No. 38D): Andhra Pradesh land pooling schemes. Special Provision • Full Value of Consideration (Section 78): • If SDV (Stamp Duty Value) exceeds actual consideration by more than 10%, SDV is deemed the full value. • Disputes may be referred to a Valuation Officer. • Cost of Acquisition: • For assets acquired prior to 01-04-2001, the cost of acquisition shall be taken as the higher of the a....
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....nce (No. 2) Act, 2024, such excess shall be ignored; (b) in the case of a domestic company,- (i) the amount of income-tax calculated on such long-term capital gains,-- - (A) at the rate of 20% for any transfer which takes place before the 23rd day of July, 2024; and - (B) at the rate of 12.5% for any transfer which takes place on or after the 23rd day of July, 2024; (c) in the case of a non-resident (not being a company) or a foreign company,- (i) 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)],-- - (A) at the rate of 20% for any transfer which takes plac....
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.... • (b) In case of a Domestic company, • the amount of income tax calculated on long term capital gain shall be 20%. • (c) In case of non-resident (not being a company) or a foreign company, • tax on LTCG on unlisted securities (or shares of a company not being a company in which public are substantially interested) shall be 10% without applying first proviso and second proviso to section 48. (i.e. Benefit of Indexation) . • In respect of other long-term capital gains, the applicable rate of tax would be 20% • (d) In any other case of a resident • the amount of income tax calculated on long term capital gain shall be 20%. Lower rate of ta....
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....r Condition • Adjustment of Unexhausted Basic Exemption Limit • Benefit of slab rate is available on such LTCG in case of resident individual or HUF i.e. not available to non-resident; • 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, • 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 as applicable in sub-clause (ii): and • Tax on LTCG compute separately, the....