| Question And Answer | |
|---|---|
| Subject: | INCOME TAX ACT – APPLICABILITY OF SEC 112A |
| Category: | Income-Tax |
| Querist: | L SAI KRISHNA KUMAR |
| Answered by: | Law Intern |
| Tags: | Capital Gains, LTCG |
| Date: | August 24, 2025 |
WHETHER LTCG EXEMPTION U\S 112A BE CLAIMED EVEN WHEN THE GTI IS ZERO OR NEGATIVE
IF THE LTCG EXCEEDS THE EXEMPTION OF RS 125000, WHETHER EXCESS IS TAXABLE OR THE ENTIRE LTCG?
THANKS IN ADVANCE
(i) Yes. The exemption of ₹1,25,000 under Section 112A can be claimed even if the GTI is zero or negative. The exemption applies specifically to LTCG from specified securities, and it is not contingent on the GTI being positive.
(ii) Only the excess LTCG over ₹1,25,000 is taxable under Section 112A.
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