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Section 112 - Tax on Long Term Capital Gains - Income Tax - Ready Reckoner - Income TaxExtract Section 112 : TAX ON LONG TERM CAPITAL GAINS Section 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 case of an individual or HUF being resident , the amount of income tax calculated on long term capital gain shall be 20%. Adjustment of Unexhausted Basic Exemption Limit Benefit of slab rate is available on such LTCG in case of resident individual or HUF i.e. not available to non-resident. (b) In case of a Domestic company , the amount of income tax calculated on long term capital gain shall be 20%. (c) In case of non-resident (not being a company) or a foreign company, tax on LTCG on unlisted securities (or shares of a company not being a company in which public are substantially interested) shall be 10% without applying first proviso and second proviso to section 48 . (i.e. Benefit of Indexation) . In respect of other long-term capital gains, the applicable rate of tax would be 20% (d) In any other case of a resident the amount of income tax calculated on long term capital gain shall be 20%. Lower rate of tax for transfer of listed securities and zero coupon bonds Any LTCG arising on transfer of Listed securities (other than a unit ) or Zero coupon bond, then tax on LTCG payable by the assessee shall be lower of: 20% of LTCG with giving effect of the provisions of the second proviso to section 48 (i.e. with indexation) , of applicable or 10% of LTCG without giving effect of the provisions of the second proviso to section 48 (i.e. without indexation). Any LTCG arising on transfer of 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,then tax on LTCG payable by the assessee shall be lower of: 20% of LTCG with benefit of the provisions of the second proviso to section 48 (i.e. with indexation) , of applicable or 10% of LTCG without giving effect to the provisions of the second proviso to section 48 (i.e. without indexation). In case of Non-corporate non-resident and foreign companies, Long term capital gains transfer of a capital assets, being unlisted securities or share in a company in which public are not substantially interest are eligible for a concessional rate of tax @10% (without indexation benefit). Section 112(2) Benefit of slab rate is available on such LTCG in case of resident individual or HUF. i.e. not available to non-resident. Chapter VI-A deduction shall not be allowed on LTCG.
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