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What is Tax on short-term capital gains in certain cases? Section 111A of Income Tax Act 1961

Tax on short-term capital gains in certain cases is defined under sections 111A of Income Tax Act 1961. Provisions under this Section is :

Section 111A of Income Tax Act "Tax on short-term capital gains in certain cases"

Section 111A. (1) Where the total income of an assessee includes any income chargeable under the head "Capital gains", arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund 60[or a unit of a business trust] and-

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
 

 

(b) such transaction is chargeable to securities transaction tax under that Chapter, the tax payable by the assessee on the total income shall be the aggregate of-

(i) the amount of income-tax calculated on such short-term capital gains at the rate of fifteen per cent; and

(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:

Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-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 short-term capital gains shall be computed at the rate of fifteen per cent :
[Provided further that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer as referred to in clause (xvii) of section 47.]

(2) Where the gross total income of an assessee includes any short-term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.

(3) Where the total income of an assessee includes any short-term capital gains referred to in sub-section (1), the rebate under section 88 shall be allowed from the income-tax on the total income as reduced by such capital gains.

Explanation.-For the purposes of this section, the expression "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.

Income Tax Act 1961

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What are the Definitions? Section 102 of Income Tax Act 1961

What is Determination of tax where total income includes income on which no tax is payable? What is Tax on accumulated balance of recognised provident fund? Section 110 and 111 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

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