Dear Admin,
I want to know the section of the following ruling. A person is having only long term capital gain of Rs. 800000 and no other income , so he should pay tax on 600000 (800000-200000) can u tell the section which excludes minimum exemption limit from capital gain income. I hope a fast reply.
Thank you.
Section 112 (1)
"Provided that where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such long-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such long-term capital gains shall be computed at the rate of twenty per cent"
Refer clause (a) of sub-section (1) of section 112.
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