Rebate under section 87A is not available against section 112A.
How such rebate calculated in this case please explain with example.
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In this case rebate is calculated on other income except 112A.
section 112A where the individual has to pay tax at the rate of 10% on long term capital gains over and above Rs. 1, 00, 000 on sale of equity shares, equity oriented mutual funds and scrapped the section 10(38) where an individual used to get exemption on the long term capital gain earned. As per the provision of section 112A rebate under section 87A does not applies on section 112A. However, the individual shall get the rebate for other heads of income. For instance, Mr. A has a Net total income of Rs. 4, 50, 000 after considering all the deductions out of which Rs. 2, 00, 000 is income from salary and balance Rs. 2, 50, 000 is Income from long term capital gains from sale of equity shares. If we take in to consideration the benefit of basic exemption and Mr. X is a normal resident individual having basic exemption of Rs. 2, 50, 000 then remaining balance of capital gains after considering the basic exemption remains Rs. 2, 00, 000 out of which up to Rs. 1, 00, 000 is exempt and remaining Rs. 1, 00, 000 is taxed at 10% flat rate plus 4% health and education cess. Thus, Mr. A has to pay tax of Rs. 10,400 even though his Total income is less than Rs. 5, 00, 000.
What if
Case 1- LTCG is 150000 and other income 350000
Case 2 LTCG 200000 other income 350000
Case 1 tax liability
150000*20%=30000
100000*5%=5000
=35000-12500=22500tax + cess
Case 2 tax liability
200000*20%=40000
100000*5%=5000
=45000+cess
It is assumed that LTCG on both casses is other than Sec 112A
If we assume that LTCG on both cases is Sec 122A, rebate –
Case 1 Rs. 5000
Case 2 Rs. Nil