can u tell me if this still holds

marcus

Active Member
#1
The following has been pasted from the govt of india I.T. website, Can anyone tell me if the exemption limit is still 50000 or is it 1 lakh for section 111A. for the AY 2006-2007

" Exemption limit of Rs. 50,000 in some cases

The proviso to section 111A gives relief, if the following conditions are satisfied -

1. The taxpayer is a resident individual or a resident Hindu Undivided Family. He may be ordinarily resident or not ordinarily resident.

2. Taxable income minus short-term capital gain is less than the amount of exemption limit, i.e., Rs. 50,000 for the assessment year 2005-06.

Relief

If the aforesaid conditions are satisfied, the following shall be deducted from such short-term capital gain.
Exemption limit - (Net income or taxable income - Such short-term capital gain)

After deducting the aforesaid amount, the balancing amount of such short-term capital gain is chargeable to tax. "