Section 112(1) Long Term Capital Gain

[CABALRAM PANDEY]

Dear All,

 

Please advice me, if an individual assessee had only LTCG and no other income, then can he avail the benefit of MPEL (Maximum Permissible Exemption Limit).

 

Thanks & Regards

CA Balram Pandey 

[JaysonJacob Mathew]

You can avail the benefit of Basic exemption from tax .

You will face problem at the time of filing ITR return. Which will show tax liability on Basic exemption limit.

You have to make a representation before the A.O, once you receive a demand notice

[CAGOPALJI AGRAWAL]

But we are not facing any such problem. 

[JaysonJacob Mathew]

For Ay 2011-12, one of my client had the issue of not getting basic exemption benefit after cpc processing , demand notice came, where I got it corrected thru representation before A.O.

[CABALRAM PANDEY]

Thanks for enlarging my knowledge, Hoping your kind advises and support in future too. 

AI Summary

Basic exemption applicability to long term capital gains may be available but can require representation if automated processing issues a demand. An individual with only long term capital gain is entitled to claim the basic exemption/MPEL, though automated return processing may nonetheless show tax liability; such processing errors can be corrected by making a representation to the assessing officer when a demand notice is received.