Section 112 of Income Tax Act "Tax on long-term capital gains"
112. (1) Where the total income of an assessee includes
any income, arising from the transfer of a long-term capital
asset, which is chargeable under the head "Capital gains",
the tax payable by the assessee on the total income shall be
the aggregate of,-
(a) in the case of an individual or a Hindu undivided
family, being a resident,-
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had
the total income as so reduced been his total income ; and
(ii) the amount of income-tax calculated on such long-term
capital gains at the rate of twenty per cent :
Provided that where the total income as reduced by such
long-term capital gains is below the maximum amount which is
not chargeable to income-tax, then, such long-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 long-term capital gains shall be computed at the
rate of twenty per cent ;
(b) in the case of a domestic company,-
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had
the total income as so reduced been its total income ; and
(ii) the amount of income-tax calculated on such long-term
capital gains at the rate of twenty per cent :
(c) in the case of a non-resident (not being a company)
or a foreign company,-
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had
the total income as so reduced been its total income ; and
(ii) the amount of income-tax calculated on long-term
capital gains [except where such gain arises from transfer
of capital asset referred to in sub-clause (iii)] at the
rate of twenty per cent; and
(iii) the amount of income-tax on long-term capital gains
arising from the transfer of a capital asset, being unlisted
securities or shares of a company not being a company in
which the public are substantially interested, calculated at
the rate of ten per cent on the capital gains in respect of
such asset as computed without giving effect to the first
and second proviso to section 48;
(d) in any other case of a resident,-
(i) the amount of income-tax payable on the total income as
reduced by the amount of long-term capital gains, had the
total income as so reduced been its total income ; and
(ii) the amount of income-tax calculated on such long-term
capital gains at the rate of twenty per cent.
Explanation.-[***]
Provided that where the tax payable in respect of any income
arising from the transfer of a long-term capital asset,
being listed securities (other than a unit) or zero coupon
bond, exceeds ten per cent of the amount of capital gains
before giving effect to the provisions of the second proviso
to section 48, then, such excess shall be ignored for the
purpose of computing the tax payable by the assessee :
Provided further that where the tax payable in respect of
any income arising from the transfer of a long-term capital
asset, being a unit of a Mutual Fund specified under clause
(23D) of section 10, during the period beginning on the 1st
day of April, 2014 and ending on the 10th day of July, 2014,
exceeds ten per cent of the amount of capital gains, before
giving effect to the provisions of the second proviso to
section 48, then, such excess shall be ignored for the
purpose of computing the tax payable by the assessee.
Explanation.-For the purposes of this sub-section,-
(a) the expression "securities" shall have the meaning
assigned to it in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (32 of 1956);
(aa) "listed securities" means the securities which are
listed on any recognised stock exchange in India;
(ab) "unlisted securities" means securities other than
listed securities.
(b) [***]
(2) Where the gross total income of an assessee includes any
income arising from the transfer of a long-term capital
asset, the gross total income shall be reduced by the amount
of such income and the deduction under Chapter VI-A shall be
allowed as if the gross total income as so reduced were the
gross total income of the assessee.
(3) Where the total income of an assessee includes any
income arising from the transfer of a long-term capital
asset, the total income shall be reduced by the amount of
such income and the rebate under section 88 shall be allowed
from the income-tax on the total income as so reduced.
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