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112 A taxation of LTCg

Helga Sequeira (Student) (23 Points)

20 May 2019

please clarify this 112 A taxation of Ltcg

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Shriti Goyal (625 Points)
Replied 20 May 2019

Section 112A to tax LTCG on sale of

a. Equity shares,

b. Units of equity oriented funds or

c. Units if business trusts

at a concessional rate of 10% on the gains in excess of Rs. 1 lakh without providing the benefits of indexation or the benefit of computation of capital gains in foreign currency in the case of non-residents.

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Helga Sequeira (Student) (23 Points)
Replied 20 May 2019

if total gain is RS. 4lakh , exemption of Rs 1 is available ? what is the tax and whether rebate u/s 87a is available ?

Shriti Goyal (625 Points)
Replied 20 May 2019

if ltcg is ₹4 lakh then.. ₹1 lakh is exempted.. nd the excess of ₹3 lakh is taxable @ 10% i.e, ₹30000...

no rebate can be applied on ltcg under section 112A..

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Pritesh Mukharjee (accountant) (256 Points)
Replied 20 May 2019

For resident Indians, the adjustment against shortfall in basic exemption limit is allowed, so if no other income, then 2.50L from the LTCG will get reduced.

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