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Income Tax

Yash soni (...) (74 Points)

10 August 2019

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 ?

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5 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166946 Points)
Replied 11 August 2019

NO.

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mohit garg (Student CA IPC / IPCC) (35 Points)
Replied 12 August 2019

yes allowed

Yash soni (...) (74 Points)
Replied 12 August 2019

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.

mohit garg (Student CA IPC / IPCC) (35 Points)
Replied 12 August 2019

in case of individual resident and huf benefit of slab and 87a available.

CA Guru Manohar (Professional - Job) (25 Points)
Replied 13 August 2019

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