Income Tax Act, 1961
Section 8: Clause (b) omitted by Act 25 of 2014, s. 35 (w.e.f. 12015).
8. Clause (b) omitted by Act 25 of 2014, s. 35 (w.e.f. 12015).
9. Ins. by Act 13 of 2018, s. 33 (w.e.f. 12019). Earlier omitted by the Finance Act (26 of 1988), s. 30 (w.e.f. 11989).
Original section was inserted by Act 15 of 1965, s. 11 (w.e.f. 111965) and later on amended by Act 13 of 1966, s. 22
(w.e.f. 11966), 20 of 1967, s. 33 and the Third Schedule (w.e.f. 11968), 42 of 1970, s. 24 (w.e.f. 11968/1969) and
21 of 1973, s. 14 (w.e.f. 11972).
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(b) in a case where the long-term capital asset is in the nature of a unit of an equity oriented
fund or a unit of a business trust, been paid on transfer of such capital asset.
(2) The tax payable by the assessee on the total income referred to in sub-section (1) shall be the
aggregate of—
(i) the amount of income-tax calculated on such long-term capital gains exceeding one lakh
rupees at the rate of ten per cent.; and
(ii) the amount of income-tax payable on the total income as reduced by the amount of long-term
capital gains referred to in sub-section (1) as if the total income so reduced 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 long-term capital gains is below the maximum amount which is
not chargeable to income-tax, then, the long-term capital gains, for the purposes of clause (i), 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.
(3) The condition specified in clause (iii) of sub-section (1) shall not apply to a transfer undertaken on
a recognised stock exchange located in any International Financial Services Centre and where the
consideration for such transfer is received or receivable in foreign currency.
(4) The Central Government may, by notification in the Official Gazette, specify the nature of
acquisition in respect of which the provisions of sub-clause (a) of clause (iii) of sub-section (1) shall not
apply.
(5) Where the gross total income of an assessee includes any long-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.
(6) Where the total income of an assessee includes any long-term capital gains referred to in subsection (1), the rebate under section 87A shall be allowed from the income-tax on the total income as
reduced by tax payable on such capital gains.
Explanation.—For the purposes of this section,—
(a) “equity oriented fund” means a fund set up under a scheme of a mutual fund specified under
clause (23D) of section 10 and,—
(i) in a case where the fund invests in the units of another fund which is traded on a
recognised stock exchange,—
(A) a minimum of ninety per cent. of the total proceeds of such fund is invested in the
units of such other fund; and
(B) such other fund also invests a minimum of ninety per cent. of its total proceeds in the
equity shares of domestic companies listed on a recognised stock exchange; and
(ii) in any other case, a minimum of sixty-five per cent. of the total proceeds of such fund is
invested in the equity shares of domestic companies listed on a recognised stock exchange:
Provided that the percentage of equity shareholding or unit held in respect of the fund, as the
case may be, shall be computed with reference to the annual average of the monthly averages of
the opening and closing figures;
(b) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of
section 2 of the Special Economic Zones Act, 2005;
(c) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of
Explanation 1 to clause (5) of section 43.
464
1[113. Tax in the case of block assessment of search cases.—The total undisclosed income of the
block period, determined under section 158BC, shall be chargeable to tax at the rate of sixty per cent.:]
2[Provided that the tax chargeable under this section shall be increased by a surcharge, if any, levied
by any Central Act and applicable in the assessment year relevant to the previous year in which the search
is initiated under section 132 or the requisition is made under section 132A.]
114. [Tax on capital gains in cases of assessees other than companies.]—Omitted by the Finance
(No. 2) Act, 1967, w.e.f. 11968 and reintroduced with material modifications in section 80T. Section
114 was substituted first by the Finance (No. 2) Act, 1962, w.e.f. 11962 and later on amended by the
Finance Act, 1964, w.e.f. 11964, the Finance Act, 1965, w.e.f. 11965, the Finance (No. 2) Act, 1965,
w.e.f. 111965 and the Finance Act, 1966, w.e.f. 11966.
115. [Tax on capital gains in case of companies.]—Omitted by the Finance Act, 1987 (11 of 1987),
s. 42 (w.e.f. 11988).
3[115A. Tax on dividends, royalty and technical service fees in the case of foreign
companies.—4[(1) Where the total income of—
(a) a non-resident (not being a company) or of a foreign company, includes any income by way
of—
(i) 5[dividends other than dividends referred to in section 115-O]; or
(ii) interest received from Government or an Indian concern on monies borrowed or debt
incurred by Government or the Indian concern in foreign currency 6[not being interest of the
nature referred to in 7[sub-clause (iia) or sub-clause (iiaa)]]; or
6[(iia) interest received from an infrastructure debt fund referred to in clause (47) of
section 10; or]
8[(iiaa) interest of the nature and extent referred to in section 194LC; or]
9[(iiab) interest of the nature and extent referred to in section 194LD; or]
10[(iiac) distributed income being interest referred to in sub-section (2) of section 194LBA;]
(iii) income received in respect of units, purchased in foreign currency, of a Mutual Fund
specified under clause (23D) of section 10 or of the Unit Trust of India,
the income-tax payable shall be aggregate of—
(A) the amount of income-tax calculated on the amount of income by way of 5[dividends
other than dividends referred to in section 115-O], if any, included in the total income, at the rate
of twenty per cent;
(B) the amount of income-tax calculated on the amount of income by way of interest referred
to in sub-clause (ii), if any, included in the total income, at the rate of twenty per cent.;
6[(BA) the amount of income-tax calculated on the amount of income by way of interest
referred to in sub-clause (iia) 11[or sub-clause (iiaa)] 9[or sub-clause (iiab)] 10[or sub-clause
(iiac)], if any, included in the total income, at the rate of five per cent.;]
1. Ins. by Act 22 of 1995, s. 24 (w.e.f. 11995). Earlier section 113 dealing with “Tax in the case of non-resident” omitted
by Act 10 of 1965, s. 35 (w.e.f. 11965).
omitted by Act 25 of 2014, s. 35 (w.e.f. 12015).
9. Ins. by Act 13 of 2018, s. 33 (w.e.f. 12019). Earlier omitted by the Finance Act (26 of 1988), s. 30 (w.e.f. 11989).
Original section was inserted by Act 15 of 1965, s. 11 (w.e.f. 111965) and later on amended by Act 13 of 1966, s. 22
(w.e.f. 11966), 20 of 1967, s. 33 and the Third Schedule (w.e.f. 11968), 42 of 1970, s. 24 (w.e.f. 11968/1969) and
21 of 1973, s. 14 (w.e.f. 11972).
463
in a case where the long-term capital asset is in the nature of a unit of an equity oriented
fund or a unit of a business trust, been paid on transfer of such capital asset.
The tax payable by the assessee on the total income referred to in sub-section
shall be the
aggregate of—
the amount of income-tax calculated on such long-term capital gains exceeding one lakh
rupees at the rate of ten per cent.; and
the amount of income-tax payable on the total income as reduced by the amount of long-term
capital gains referred to in sub-section
as if the total income so reduced 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 long-term capital gains is below the maximum amount which is
not chargeable to income-tax, then, the long-term capital gains, for the purposes of clause
The condition specified in clause
of sub-section
shall not apply to a transfer undertaken on
a recognised stock exchange located in any International Financial Services Centre and where the
consideration for such transfer is received or receivable in foreign currency.
The Central Government may, by notification in the Official Gazette, specify the nature of
acquisition in respect of which the provisions of sub-clause
of clause
of sub-section
shall not
apply.
Where the gross total income of an assessee includes any long-term capital gains referred to in
sub-section
Where the total income of an assessee includes any long-term capital gains referred to in subsection
“equity oriented fund” means a fund set up under a scheme of a mutual fund specified under
clause
of section 10 and,—
in a case where the fund invests in the units of another fund which is traded on a
recognised stock exchange,—
a minimum of ninety per cent. of the total proceeds of such fund is invested in the
units of such other fund; and
such other fund also invests a minimum of ninety per cent. of its total proceeds in the
equity shares of domestic companies listed on a recognised stock exchange; and
in any other case, a minimum of sixty-five per cent. of the total proceeds of such fund is
invested in the equity shares of domestic companies listed on a recognised stock exchange:
Provided that the percentage of equity shareholding or unit held in respect of the fund, as the
case may be, shall be computed with reference to the annual average of the monthly averages of
the opening and closing figures;
“International Financial Services Centre” shall have the meaning assigned to it in clause
of
section 2 of the Special Economic Zones Act, 2005;
“recognised stock exchange” shall have the meaning assigned to it in clause
of
Explanation 1 to clause
of section 43.
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1[113. Tax in the case of block assessment of search cases.—The total undisclosed income of the
block period, determined under section 158BC, shall be chargeable to tax at the rate of sixty per cent.:]
2[Provided that the tax chargeable under this section shall be increased by a surcharge, if any, levied
by any Central Act and applicable in the assessment year relevant to the previous year in which the search
is initiated under section 132 or the requisition is made under section 132A.]
114. [Tax on capital gains in cases of assessees other than companies.]—Omitted by the Finance
(No. 2) Act, 1967, w.e.f. 11968 and reintroduced with material modifications in section 80T. Section
114 was substituted first by the Finance (No. 2) Act, 1962, w.e.f. 11962 and later on amended by the
Finance Act, 1964, w.e.f. 11964, the Finance Act, 1965, w.e.f. 11965, the Finance (No. 2) Act, 1965,
w.e.f. 111965 and the Finance Act, 1966, w.e.f. 11966.
115. [Tax on capital gains in case of companies.]—Omitted by the Finance Act, 1987 (11 of 1987),
s. 42 (w.e.f. 11988).
3[115A. Tax on dividends, royalty and technical service fees in the case of foreign
companies.—4[
Where the total income of—
a non-resident (not being a company) or of a foreign company, includes any income by way
of—
5[dividends other than dividends referred to in section 115-O]; or
interest received from Government or an Indian concern on monies borrowed or debt
incurred by Government or the Indian concern in foreign currency 6[not being interest of the
nature referred to in 7[sub-clause
or sub-clause
interest received from an infrastructure debt fund referred to in clause
of
section 10; or]
8[
interest of the nature and extent referred to in section 194LC; or]
9[
interest of the nature and extent referred to in section 194LD; or]
10[
distributed income being interest referred to in sub-section
of section 194LBA;]
income received in respect of units, purchased in foreign currency, of a Mutual Fund
specified under clause
of section 10 or of the Unit Trust of India,
the income-tax payable shall be aggregate of—
the amount of income-tax calculated on the amount of income by way of 5[dividends
other than dividends referred to in section 115-O], if any, included in the total income, at the rate
of twenty per cent;
the amount of income-tax calculated on the amount of income by way of interest referred
to in sub-clause
the amount of income-tax calculated on the amount of income by way of interest
referred to in sub-clause
11[or sub-clause