Proviso to section 112(1)

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CA Prateek Garg

CA in Practice

1113 Points Posted on 25 November 2011

My question is related to Proviso to Section 112(1) which is as follows

Provided that where the tax payable in respect of any income arising from the transfer of a long-term capital asset, being listed securities or unit or zero coupon bond, exceeds ten per cent of the amount of capital gains before giving effect to the provisions of the second proviso to section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the assessee

My question is

In case of Capital gain of more than one asset how to apply the provisions of proviso to Section 112(1)

On each Capital Gain separately or on combined amount of capital gain from all the assets.

For e.g.

Income under head Capital Gain (all Long Term)

	LTCG with Indexation	capital gain without Indexation
Listed Securities of A Ltd.	10000	18000
Listed Securities of B Ltd.	15000	32000
House Property	(5000) – Loss	2000

Income from other Sources – 180000

Compute the Tax Payable on LTCG for A Y 2012-13

Replies (4)

Z

Tax Consultation (US and India)

2348 Points Posted on 26 November 2011

It is for assesse to decide wheter to opt for provision or not. He will opt that option which is most benefitial to him (for eg. lower tax)

A 10,000 X .20 or 18,000 X .10 (whichever is lower , i.e 1800 under provisio of sec 112(1))

B 15,000 X .20 or 32,000 X .10 (whichever is lower ,i.e 3000 NOT UNDER provisio of 112(1)

Further under provision of sec 112 , If total income includes LTCG then tax payable is 20% of LTCG + normal tax on remaining income

LTCG shall be reduced by the amount by which the total income so reduced falls short of MAXIMUM AMOUNT NOT CHARGEABLE TO INCOME TAX and balance is charged @ 20%

CA Prateek Garg

CA in Practice

1113 Points Posted on 27 November 2011

Originally posted by : Z
	It is for assesse to decide wheter to opt for provision or not. He will opt that option which is most benefitial to him (for eg. lower tax) A 10,000 X .20 or 18,000 X .10 (whichever is lower , i.e 1800 under provisio of sec 112(1)) B 15,000 X .20 or 32,000 X .10 (whichever is lower ,i.e 3000 NOT UNDER provisio of 112(1) Further under provision of sec 112 , If total income includes LTCG then tax payable is 20% of LTCG + normal tax on remaining income LTCG shall be reduced by the amount by which the total income so reduced falls short of MAXIMUM AMOUNT NOT CHARGEABLE TO INCOME TAX and balance is charged @ 20%

but what about loss of house. how you will treat this

Z

Tax Consultation (US and India)

2348 Points Posted on 27 November 2011

Ioss from house property can also bo adjusted.

Steffi

Student CA Final

30 Points Posted on 11 March 2016

What about the taxability of sale of shares not listed on a regonised stock exchange? and what if the LTCG along with rental income together is below Basic exemption limit of the assessee?

Shares purchased in 1995 for 4000 now (2016) sold off market at 105120