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Capital gains related tax query

I am of the understanding that capital gains under 1L are tax free and those gains aren’t to be added to your taxable income. However, I met a friend this evening who informed me that her CA says that capital gains are always added to the taxable income and are not really tax free regardless of them being under 1L. If this is true, my friend is not getting the 6K rebate she was hoping to get since her taxable income now crosses the 5L barrier. Had the capital gains not been added to her taxable income, she would well under this 5L barrier. Can anybody please confirm if this is indeed true? Some additional context: The capital gains are from her ELSS investments which were sold in the last FY and amounted to about 50k over the sale of about 1.7L If this is indeed true, I have a follow up question from an inversion POV - if capital gains indeed exceed 1L, will one then be taxed twice? i.e. The 10% LTCG tax as well as the slab based tax on taxable income (salary - dedications + capital gains)

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arbitdxc

Mentor/Advisor

a year ago

1. If the elss gains are long term, (bought more than 1 yr before sale date), exemption of 1L on gains can be had. If short term gains, then no. 2. Ltcg is taxed at 10%, sometimes with benefit on indexation, as the case maybe. The double taxation for ltcg is incorrect.
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MealyBug

Startup

a year ago

I do understand that. However, the question is, are these capital gains added to taxable income or not? And if yes, how does taxation work, both capital gains and slab based, if capital gains are above 1L exemption limit?
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arbitdxc

Mentor/Advisor

a year ago

Added to taxable income. In taxable income multiple rows are created. One for ltcg, another for stcg, another for income at normal rates. Every row will have its own tax rates. Best is to fill the itr, and see how it looks like at the end (before verification).
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NumbScholar

Stealth

a year ago

Your friend needs a new CA, their CA needs a new career
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MealyBug

Startup

a year ago

Well, if this turns out to be incorrect, I’ll make sure he loses many more clients than just my friend. 6k might not be a lot to many but it is to my friend, especially since it is her birthday in August.
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Earthshaker

Startup

a year ago

Your friends CA has the degree for a reason, and your friend is paying the CA for a said reason.
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