Section 111A of Income Tax Act "Tax on short-term capital gains in certain cases"
111A. (1) Where the total income of an assessee includes
any income chargeable under the head "Capital gains",
arising from the transfer of a short-term capital asset,
being an equity share in a company or a unit of an equity
oriented fund or a unit of a business trust and-
(a) the transaction of sale of such equity share or unit is
entered into on or after the date on which Chapter VII of
the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction
tax under that Chapter,
the tax payable by the assessee on the total income shall be
the aggregate of-
(i) the amount of income-tax calculated on such short-term
capital gains at the rate of fifteen per cent; and
(ii) the amount of income-tax payable on the balance amount
of the total income as if such balance amount were the total
income of the assessee:
Provided that in the case of an individual or a Hindu
undivided family, being a resident, where the total income
as reduced by such short-term capital gains is below the
maximum amount which is not chargeable to income-tax, then,
such short-term capital gains shall be reduced by the amount
by which the total income as so reduced falls short of the
maximum amount which is not chargeable to income-tax and the
tax on the balance of such short-term capital gains shall be
computed at the rate of fifteen per cent :
Provided further that nothing contained in clause (b) shall
apply to a transaction undertaken on a recognised stock
exchange located in any International Financial Services
Centre and where the consideration for such transaction is
paid or payable in foreign currency.
(2) Where the gross total income of an assessee includes any
short-term capital gains referred to in sub-section (1), the
deduction under Chapter VI-A shall be allowed from the gross
total income as reduced by such capital gains.
(3) Where the total income of an assessee includes any
short-term capital gains referred to in sub-section (1), the
rebate under section 88 shall be allowed from the income-tax
on the total income as reduced by such capital gains.
Explanation.-For the purposes of this section,-
(a) "equity oriented fund" shall have the meaning assigned
to it in 63[clause (a) of the Explanation to section 112A];
(b) "International Financial Services Centre" shall have the
same meaning as assigned to it in clause (q) of section 2 of
the Special Economic Zones Act, 2005 (28 of 2005);
(c) "recognised stock exchange" shall have the meaning
assigned to it in clause (ii) of the Explanation 1 to
sub-section (5) of section 43.
What is Avoidance of tax by certain transactions in securities? Section 94 of Income Tax Act 1961
What are the Definitions? Section 102 of Income Tax Act 1961
What is Tax on short-term capital gains in certain cases? Section 111A of Income Tax Act 1961
What is Tax on long-term capital gains? Section 112 of Income Tax Act 1961
Section 112A Tax on long-term capital gains in certain cases