Amendment of section 112.
48. In section 112 of the Income-tax Act, in sub-section (1), in clause (c), in sub-clause (iii), for the words “unlisted securities”, the words “unlisted securities or shares of a company not being a company in which the public are substantially interested” shall be substituted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 48 of the Bill seeks to amend section 112 of the Income tax Act relating to tax on long-term capital gains.
Sub-clause (iii) of clause (c) of sub-section (1) of the aforesaid section, inter alia, provides that long-term capital gains arising from transfer of a capital asset, being unlisted securities, shall be chargeable to tax at the rate of ten per cent.
It is proposed to amend the said sub-clause (iii) so as to provide that long-term capital gains arising from transfer of a capital asset being, shares of a company not being a company in which the public are substantially interested, shall also be chargeable to tax at the rate of ten per cent.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to assessment year 2017-2018 and subsequent years.
