Is rebate u/s 87A available for unlisted private company shares long term capital gain as shown in illustration for Resident person age of 45. AT link https://taxguru.in/income-tax/tax-long-term-capital-gain-income-tax-act-1961.html/comment-page-1/?unapproved=2051301&moderation-hash=59d05778cf4b06d824568d2c605b4393#comment-2051301 It is allowed (and after deducting rebate of Rs. 2,500 as per section 87A,). And At link https://taxguru.in/income-tax/situations-tax-payable-income-rs5-lakhs.html It is Denied. Please guide, correct position of law. 22.04.2019
Section 87A speaks about rebate in case where total income of an assessee is below Rs. 3.5 lakh he will get a rebate of Rs. 2500.
Therefore there is no limitation on type of income. In your case also the gain will be calculated and tax will be charges at 20% and then that tax will be reduced by 2,500 and you need to pay balance tax.
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Thank you.
Hi,
-Rebate u/s 87A has direct relation with the total income. Total income also includes capital gain income.
Hence allowed.
Thanks
Hello,
Yes, the exemption under section 87A would be available, the only condition would be that your total income must be within Rs. 3,50,000/- (including the long term capital gain)
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
Yes, it is allowable provided your total taxable income including the LTCG should not be more than Rs 3.5 lakh.
Hello Sir,
Individual taxpayers with annual income (includes all income) up to Rs. 5 lakh rupees to get full tax rebate.
The income limit eligible to avail tax rebate under section 87A raised to Rs. 5 lakh from Rs. 3.5 lakh.
The limit of tax rebate under section 87A increased to Rs. 12,500 from Rs. 2,500.
So, the rebate u/s 87A is available for unlisted private company shares long term capital gain.
It is totally allowable.
Hi
Rebate under sec 87A is linked with Total taxable Income.It Includes all heads of Income.So it will be allowed in your case if your total taxable income does not exceeds 3.5 lacs .
Hope it helps
Hi,
Rebate u/s 87A is available for capital gain arising in sale of unlisted shares.
However, the same is not available for capital gain arising on sale of listed shares.
The exemption of 2.5 lacs is available for both of the above.
