No applicability of section 14A on LTCG exemption of Rs.1 Lakh

• January 14, 2021
• CA Chandan Agarwal's Office

No applicability of section 14A on exemption of Rs.1,00,000/- (One Lakh) Long Term Capital Gain (LTCG) under Section 112A of Income Tax Act, 1961.

Section 14A shall not be applicable on LTCG income earned u/s 112A. The answer to the questions of applicability of section 14A for LTCG u/s 112A, as income covered under section 112A was formerly falling under the ambit of section 10(38) which was part of Chapter III which deals with incomes not includible in total income. Now with section 10(38) rendered inoperative, these incomes have been taken out of ambit of definition “incomes not includible in total income”. Hence, section 14A shall not apply to LTCG under the new regime.

Read more on: https://taxguru.in/income-tax/applicability-section-14a-ltcg-exemption-rs-1-lakh.html