How LTCG is calculated for a person whose income in less than 2.5 lakh.
Is it same for all person , no matter if he or she is coming under zero tax bracket slab?
Let us assume you have salary income of Rs.2,25,000 and Rs.50,000 LTCG, then you can reset the basic exemption limit as Rs.2,25,000+Rs.25,000 (LTCG)=No Tax. For remaining Rs.25,000 you have to pay the tax as per LTCG tax rate. Keep one thing in mind that to rest basic exemption limit, first you have to add all income sources, then finally capital gains.
If a person having income 2,25,000 and 1,25,000 is capital gain then there would be no TAX?
2,25000+1,25000=3,50,000 out of 2.5 lakh is tax free and rest 1 lakh amount is also tax free as there is no LTCG till 1 lakh?Am I correct?