Tax on Short term capital Gains (STCG) – Section 111A
|Short Term Capital Asset||Rate of Tax|
|Any STCG arising from transfer of equity shares or units of equity oriented fund on which Securities Transaction Tax(STT) has been paid||15%|
|Any STCG arising from a transaction undertaken in foreign currency on a Recognized stock exchange located in an IFSC even though on which Securities Transaction Tax(STT) has been not paid||15%|
Note: STCG arising on transfer of other Short Term Capital Assets would be charged at Normal Rates of Tax.
Tax on Long term Capital Gains (LTCG) – Section 112
|Long Term Capital Asset||Rate of tax|
|Unlisted securities, or shares of a closely held company||Non-corporate non-resident/ foreign company – 10% without the benefit of indexation and currency fluctuation |
Other Assessees – 20%, with indexation benefit
|Listed securities other than a unit) or a zero- coupon bond||– 10%, without the benefit of indexation or |
– 20%, availing the benefit of indexation whichever is more beneficial to the assessee
|Other Assets||– 20%|
Tax on Long term Capital Gains on certain assets – Section 112A
|Long Term Capital Asset||Rate of Tax|
|Any LTCG exceeding Rs.100000 arising on transfer equity shares or units of equity oriented fund on which STT has been paid at the time of acquisition of such shares||10%|
|Any LTCG exceeding Rs.100000 arising from a transaction undertaken in foreign currency on a recognized stock exchange located in an IFSC even though on which STT has been not paid||10%|
- In case of a resident individual or a Hindu Undivided Family (HUF), the long-term capital gain taxable u/s 112 or 112A or short-term capital gain taxable u/s 111A shall be reduced by the unexhausted basic exemption limit and the balance shall be subject to tax.
- No deduction under Chapter VI-A can be claimed in respect of such long-term capital gain chargeable to tax u/s 112 or u/s 112A or short-term capital gain chargeable to tax u/s 111A.
- Rebate u/s 87A is not available in respect of tax payable @10% on Long-term Capital Gains u/s 112A.