Income Tax Act, 2025
Section 1: Subs. by Act 10 of 1965, s. 32, for section 110 (w.e.f. 11965).
1. Subs. by Act 10 of 1965, s. 32, for section 110 (w.e.f. 11965).
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111. Tax on accumulated balance of recognised provident fund.—(1) Where the accumulated
balance due to an employee participating in a recognised provident fund is included in his total income,
owing to the provisions of rule 8 of Part A of the Fourth Schedule not being applicable, the 1[Assessing
Officer] shall calculate the total of the various sums of 2[tax] in accordance with the provisions of
sub-rule (1) of rule 9 thereof.
(2) Where the accumulated balance due to an employee participating in a recognised provident fund
which is not included in his total income under the provisions of rule 8 of Part A of the Fourth Schedule
becomes payable, super-tax shall be calculated in the manner provided in sub-rule (2) of rule 9 thereof.
3[111A. Tax on short-term capital gains in certain cases.—(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 4[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 5[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 6[fifteen per cent.].
7[Provided further that nothing contained in clause (b) shall apply to a transaction undertaken on a
recognised stock exchange located in any International Financial Services Centre and where the
consideration for such transaction is paid or payable in foreign currency.]
(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 VIA 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.
8[Explanation.—For the purposes of this section,—
(a) “equity oriented fund” shall, have the meaning assigned to it in the Explanation to
clause (38) of section 10;
(b) “International Financial Services Centre” shall have the same meaning as assigned to it in
clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(c) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of the
Explanation 1 to sub-section (5) of section 43.]]
Where the accumulated
balance due to an employee participating in a recognised provident fund is included in his total income,
owing to the provisions of rule 8 of Part A of the Fourth Schedule not being applicable, the 1[Assessing
Officer] shall calculate the total of the various sums of 2[tax] in accordance with the provisions of
sub-rule
of rule 9 thereof.
Where the accumulated balance due to an employee participating in a recognised provident fund
which is not included in his total income under the provisions of rule 8 of Part A of the Fourth Schedule
becomes payable, super-tax shall be calculated in the manner provided in sub-rule
of rule 9 thereof.
3[111A. Tax on short-term capital gains in certain cases.—
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 4[or a unit
of a business trust] and—
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
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—
the amount of income-tax calculated on such short-term capital gains at the rate of 5[fifteen
per cent.]; and
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 6[fifteen per cent.].
7[Provided further that nothing contained in clause
shall apply to a transaction undertaken on a
recognised stock exchange located in any International Financial Services Centre and where the
consideration for such transaction is paid or payable in foreign currency.]
Where the gross total income of an assessee includes any short-term capital gains referred to in
sub-section
Where the total income of an assessee includes any short-term capital gains referred to in
sub-section
“equity oriented fund” shall, have the meaning assigned to it in the Explanation to
clause
of section 10;
“International Financial Services Centre” shall have the same meaning as assigned to it in
clause
of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
“recognised stock exchange” shall have the meaning assigned to it in clause
of the
Explanation 1 to sub-section
of section 43.]]