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Income Tax
Rebate u/s 87-A is not allowed from Income derived under LTCG u/s 112-A, whether rebate will be allowed when income is derived under LTCG u/s 112 ?
Replies (5)
NO.
yes allowed
Thanks Mohit, it would be of great help to me if you attach a testimony for your view. Please share the picture of the quoted text, if you've read it in any book.
in case of individual resident and huf benefit of slab and 87a available.
You can take rebate U/S 87A for LTCG U/S 112, since no provision specifically stopping you to add LTCG U/S 112 to total Income.
Difference between Section 112 and Section 112A of Income Tax Act, 1961
| S.No. | Particulars | Section 112 | Section 112A | ||
| 1 | What type of LTCA covers? | Applies to transfer of all Long Term Capital Assets defined as per section 2(29A) of the Act. | Applies to transfer of only following Long Term Capital Assets:- | ||
| Equity share in a company | |||||
| Unit of Equity Oriented Fund | |||||
| Unit of a business trust | |||||
| 2 | Condition of payment of STT | Applies on transfer of LTCA whether STT is paid or not. | Applies only when following conditions are satisfied:- | ||
| LTCA | STT Paid | ||||
| On Acquisition | On Transfer | ||||
| Equity share in a company | Yes | Yes | |||
| Unit of Equity Oriented Fund | No | Yes | |||
| Unit of a business trust | No | Yes | |||
| However, above conditions are not applicable if transfer covers under sub-section (3) or (4). | |||||
| 3 | Tax Rate | Tax Rate @ 20% or 10% | Tax Rate only @ 10% in excess of Rs. 1 lakh. | ||
| 4 | Exemption of Rs. 1 lakh | No | Yes | ||
| 5 | Applicability | Inserted by Finance Act, 1992 | Inserted by Finance Act, 2018. Applicable w.e.f. 01-04-2019 | ||
| 6 | Relief u/s 87A | Yes | No | ||
| 7 | Indexation benefit as per 2nd proviso to Section 48 | Yes | No | ||
| 8 | Mode of Computation of Capital Gain in foreign currency in case of NR (1st proviso to Section 48) | Yes | No | ||
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