Recently, my uncle asked me do I pay capital gains tax if I am retired? I said, yes, retired individuals in India are subject to capital gains tax upon selling capital assets like property, stocks, or mutual funds. However, senior citizens (aged 60 and above) and super senior citizens (aged 80 and above) benefit from higher basic exemption limits. It can help reduce or eliminate their tax liability.
Tax Implication and Exemption on Capital Gains for Senior Citizen
Here are the tax exemption limits for the following categories:
Senior Citizens (60 to 79 years): Basic exemption limit of Rs 3 lakh.
Super Senior Citizens (80+ years): Basic exemption limit of Rs 5 lakh.
These limits mean that if your total income, including capital gains, falls within these thresholds, you may not owe any tax. Additionally, unutilised portions of these exemptions can be adjusted against short-term capital gains.
Capital Gains Tax Rates
Short-Term Capital Gains (STCG): For equity assets held less than 12 months, taxed at 15%.
Long-Term Capital Gains (LTCG): For equity assets held over 12 months, gains exceeding Rs1.25 lakh are taxed at 12.5%.
Ensure your total income remains within the basic exemption limit to avoid tax. I hope you found this helpful.
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Why do Senior Citizens have to Pay Capital Gains Tax in India?
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Do I Pay Capital Gains Tax If I am Retired?
anita
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7 months
2025-05-24T06:09:51+00:00 2025-05-24T06:09:53+00:00Comment
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