Ram (Engineer) (98 Points)
08 August 2021Dear Experts,
I am a senior citizen and I understand I can get up to Rs. 12,500/- rebate in tax payable, under Sec 87A, if my total income is less than Rs. 5 lacs.
Does the total income include the STCG and LTCG? For instance, my OS income is Rs. 4 lacs and my STCG + LTCG = 1.25 lacs. Do I qualify for the Rebate u/s 87A?
Appreciate your kind expert advise.
Regards,
Ram
Akshay Agaldiviti
(-----)
(40 Points)
Replied 08 August 2021
1.Total income means 'Gross total income( includes STCG and LTCG) Less Deductions under chapter VIA' which shall ne less than 5Lakh.
2.person shall be resident
3. Rebate is not available on Tax on LTCG under 112A.(on LTCG under 112, rebate is still available)
Hope it is clear
Akshay Agaldiviti
akshay.agaldiviti @ gmail.com
Akshay Agaldiviti
(-----)
(40 Points)
Replied 08 August 2021
In your case, Rebate is not available to you.
Ram
(Engineer)
(98 Points)
Replied 08 August 2021
Thanks for your clarification, Sri Akshay Agaldiviti.
While I am clear on answers (1) and (2), I do not yet understand the (3) :
You say that under provision 112, rebate is still available. What kind of rebate is this? Does this mean the income from Capital Gains under 112, is not added to the total income in the application of 87A ?
Appreciate your kind clarification.
Regards,
Ram
Sunil Reddy Somu
(48 Points)
Replied 08 August 2021
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prasanth
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CAclubindia
