Deduction in respect of long-term capital gains in the case of assesses other than companies
9[Deduction in respect of long-term capital gains in the case of assesses other than companies.
80T. Where the gross total income of an assessee not being a company includes any income chargeable under the head “Capital gains” relating to capital assets other than short-term capital assets (such income being,hereinafter, referred to as long-term capital gains), there shall be allowed, in computing the total income of the assessee, a deduction from such income of an amount equal to—
(a) in a case 10[* * *] where the long-term capital gains do not exceed 11[five thousand rupees], the whole of such long-term capital gains ;
12[(b) 13[in any other case, five thousand rupees, as increased by a sum calculated-
(A) at such of the rates specified in column (2) in the Twelfth Schedule as is applicable, with reference to the amount by which the long-term capital gains relating to capital assets, being buildings or lands or any rights in buildings or lands, exceed five thousand rupees;
(B) at such of the rates specified in column (3) in the Twelfth Schedule as is applicable, with reference to the amount by which the longterm capital gains relating to any other capital assets exceed five thousand rupees] :
Provided that where the long-term capital gains relate to—
(i) buildings or lands or any rights in buildings or lands ;
(ii) gold, bullion or jewellery ; and
(iii) any other capital asset,
or to any two of the categories of capital assets mentioned in the foregoing clauses of this proviso (the assets falling under each clause being treated as a separate category), the deduction of 14[five thousand rupees] referred to in this clause shall be allowed in the following order, namely :—
(1) the deduction shall first be allowed against long-term capital gains relating to the assets mentioned in clause (i);
(2) next, where the amount of the long-term capital gains relating to the assets mentioned in clause (i) is less than 14[five thousand rupees], a deduction equal to the amount of the difference between 14[five thousand rupees] and such capital gains shall be allowed against the long-term capital gains relating to the assets mentioned in clause (ii); and
(3) thereafter, the balance, if any, of the said 14[five thousand rupees] shall be allowed as a deduction against the long-term capital gains relating to the assets mentioned in clause (iii),
and the provisions of sub-clause (A) and sub-clause (B) of this clause shall apply as if the references to 14[five thousand rupees] therein were references to the amount of deduction allowed in accordance with clauses (1), (2) and (3) of this proviso:
14a[Provided further that the aggregate amount of deduction under this section in relation to assets mentioned in clause (ii) of the preceding proviso shall, in no case, exceed fifty thousand rupees.]]]
9. Inserted, in place of section 114, which was omitted, by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968.
10. “where the gross total income does not exceed ten thousand rupees or” omitted by the Finance (No. 2) Act, 1980, w.e.f. 1-4-1981.
11. “ten thousand rupees” shall be substituted for the words in italics by the Finance Act,1986, w.e.f. 1-4-1987.
12. Substituted for the following by the Finance Act, 1982, w.e.f. 1-4-1983 :
“(b) in any other case, five thousand rupees as increased by a sum equal to—
(i) twenty-five per cent of the amount by which the long-term capital gains relating to capital assets, being buildings or lands, or any rights in buildings or lands, exceed five thousand rupees ;
(ii) forty per cent of the amount by which the long-term capital gains relating to any other capital assets exceed five thousand rupees :
Provided that in a case where the long-term capital gains relate to buildings or lands, or any rights in buildings or lands, as well as to other assets, the sum referred to in sub-clause (ii) of clause (b) shall be taken to be—
(A) where the amount of the long-term capital gains relating to the capital assets mentioned in sub-clause (i) is less than five thousand rupees, forty per cent of the amount by which the long-term capital gains relating to any other capital assets exceed the difference between five thousand rupees and the amount of the longterm capital gains relating to the capital assets mentioned in sub-clause (i) ; and
(B) where the amount of the long-term capital gains relating to the capital assets mentioned in sub-clause (i) is equal to or more than five thousand rupees, forty per cent of the long-term capital gains relating to any other capital assets.”
13. Following shall be substituted for the portion in italics by the Finance Act, 1986, w.e.f. 1-4-1987 :
“in any other case, ten thousand rupees as increased by a sum equal to—
(A) fifty per cent of the amount by which the long-term capital gains relating to capital assets, being buildings or lands or any rights in buildings or lands or gold, bullion or jewellery, exceed ten thousand rupees ;
(B) sixty per cent of the amount Dy which the long-term capital gains relating to any other capital assets exceed ten thousand rupees.”
14. “ten thousand rupees” shall be substituted for the words in italics by the Finance Act, 1986, w.e.f, 1-4-1987.
14a. Second proviso shall be omitted by the Finance Act, 1986, w.e.f. 1-4-1987.
[AS AMENDED BY THE FINANCE ACT, 1986]