Section 80T of ITA, 1961 : Section 80T: [Omitted]

Explanation using Example

Imagine Mr. Sharma, a salaried individual, sold a piece of land in 1986 that he had held for more than three years, thus incurring a long-term capital gain. At that time, Section 80T of the Income-tax Act, 1961 would have allowed him to claim a deduction for this gain, reducing his taxable income. However, if Mr. Sharma sold another piece of land under similar conditions in 1989, he would not be able to claim the deduction under Section 80T, as it was omitted by the Finance Act, 1987, effective from April 1, 1988. Therefore, the long-term capital gain from the sale of the land in 1989 would be fully taxable without the benefit of the deduction that was previously available.