Modify Rates

Further, with the reduction in the rates of tax from 30 per cent to 15 per cent in the slab of Rs 40,001 to Rs 60,000, without a corresponding effect in Section 112(1) (a) of the IT Act, 1961, it would result in the taxation of long-term capital gain in the case of a person having a total income not exceeding Rs 60,000 where the normal rate of tax is only 15 pre cent at the moment. Hence, this should be modified to bring it in tune with the reduced rate of tax. This inadvertent omission requires to be corrected before the Finance Bill, 1996 is enacted.