No, if the Gross total income of an Assessee includes any income arising from the transfer of Capital asset then, the Gross total income shall be reduced by the amount of such income.
The deduction under section 80C to 80U shall be allowed after reducing Long term/short term capital gain from Gross total income.
Example :
If my investments under section 80C is Rs.1,42,000/- and my gross total income comprises of the following-
- Salary of Rs.10,00,000/-
- Income from other sources 42,000/-
- Long term capital gain of Rs.5,00,00/-
What will be my Taxable income and Tax rates applicable?
| Particulars | Amount |
| Gross total income | 15,42,000 |
| Less: Long term capital gain | 5,00,000 |
| Gross total income(excluding LTCG) | 10,42,000 |
| Less: Deductions under Section 80C to 80U | 1,42,000 |
| Total Income (excluding LTCG) | 9,00,000 |
Taxability
- LTCG will be charged at 20% under section 112A
- Total Income excluding LTCG will be charged at normal Tax rates