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Report No. 12

125. Tax on capital gains in cases of assessees other than companies.-

Where the total income of an assessee not being a company, includes any income chargeable under the head "Capital gains", the tax payable by him on his total income shall be-

[Section 17(6), opening lines"

(a) the amount of income tax and super-tax payable on his total income as reduced by the amount of such inclusion, had the total income so reduced been his total income, plus

[Section 17(6), clause (i), part]

(b) an amount of income-tax determined in accordance with the following formula, that is to say-

X= Y x CG
T - 2/3 CG

where-

12.158 Twelfth Report

X stands for the amount of income-tax referred to in the beginning of this clause.

T stands for the total income of the assessee (which includes capital gains),

CG stands for the income chargeable under the head "Capital gains" included, in the total income of the assessee, and

Y stands for the income-tax which would have been payable on the total income of the assessee as reduced by two-thirds of the amount of the income chargeable under the head "Capital gains" included in his total income, had the total income so reduced been his total income:

[Section 17(6)(ii), main para.]

Provided that-

(i) where the total income does not exceed the sum of ten thousand rupees, the amount payable under clause (b) shall be nil; and

(ii) in no case shall the amount payable under clause (b) exceed one-half of the amount, if any, by which the income chargeable under the head "Capital gains" exceeds the sum of five thousand rupees.

[Section 17(6)(ii), proviso]



Income-Tax Act, 1922 Back




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