Amendment of section 112
34. In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2015,––
(a) in the proviso, occurring after clause (d), for the words “being listed securities or unit”, the words and brackets “being listed securities (other than a unit)” shall be substituted;
(b) in the Explanation, clause (b) shall be omitted.
Notes on Clauses:
Clause 34 of the Bill seeks to amend section 112 of the Income-tax Act relating to tax on long-term capital gains.
The existing provisions contained in section 112 provide for tax payable in the case of income arising from the transfer of a long-term capital asset. The proviso to sub-section (1) provides that where the tax payable in respect of any income arising from transfer of a long-term capital asset, being listed securities or unit or zero coupon bond exceeds ten per cent. of the amount of capital gains without indexation adjustment, such excess shall be ignored.
It is proposed to amend the aforesaid proviso so as to provide that where the tax payable in respect of any income arising from 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 without indexation adjustment, such excess shall be ignored.
This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years.
