What if my annual income is less than the threshold amount below which income is exempt from tax?

If your annual income, even after adding the capital gains is less than the taxable income bracket of ₹2,50,000, then all of your capital gains will be tax free.

For example, if your taxable income after all deductions is ₹2,00,000 and if you have earned capital gains of up to ₹50,000, then you do not have to pay any tax on the capital gains since an income of up to ₹2,50,000 is exempt from income tax. If your capital gains exceed ₹50,000 in the above example, you will have to pay long-term capital gains tax only on the capital gains over and above ₹50,000.

Please consult a tax consultant or advisor for more information.