Section 112 of the Income Tax Act 1961 prescribes provisions regarding taxation of long term capital gains arising to an assessee.
In case of resident Individual or HUF :
LTCG shall be taxable at the rate of 20%.
Balance income shall be taxable using the normal provisions.
If the balance income is less than the basic exemption limit, the amount of LTCG u/s 112 shall be reduced by unexhausted basic exemption limit.
In case of domestic company :
LTCG shall be taxable at the rate of 20%.
Balance income shall be taxable using the normal provisions.
In case of a non-resident or a foreign company :
At the rate of 10% on LTCG on unlisted securities or shares of a company in which public are not substantially interested without giving benefit of indexation.
Balance LTCG shall be taxable at the rate of 20%.
Balance income other than LTCG shall be calculated using the normal provisions.
In any other case of a resident :
LTCG shall be taxable at the rate of 20%.
Balance income shall be taxable using the normal provisions.
No Deduction under Chapter VI-A shall be allowed against income taxable u/s 112.
Tax on long term capital asset being listed securities (other than units) or ZCB (Zero Coupon Bond) shall be calculated either using the provisions illustrated above or at the rate of 10% without giving the benefit of indexation, whichever is lower.
0 Comments