Income Tax Act, 2025
Section 5: Ins. by Act 7 of 2017, s. 6 (w.e.f. 12015).
5. Ins. by Act 7 of 2017, s. 6 (w.e.f. 12015).
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(b) the land pooling ownership certificate issued under the scheme to the assessee in
respect of land or building or both referred to in clause (a); or
(c) the reconstituted plot or land, as the case may be, received by the assessee in lieu of land
or building or both referred to in clause (a) in accordance with the scheme, if such plot or land, as
the case may be, so received is transferred within two years from the end of the financial year in
which the possession of such plot or land was handed over to him;]
(38) any income arising from the transfer of a long-term capital asset, being an equity share in a
company or a unit of an equity oriented fund 1[or a unit of a business trust] where—
(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:
2[Provided that the income by way of long-term capital gain of a company shall be taken into
account in computing the book profit and income-tax payable under section 115JB:]
3* * * * *
4[Provided also that nothing contained in sub-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.]
5[Provided also that nothing contained in this clause shall apply to any income arising from
the transfer of a long-term capital asset, being an equity share in a company, if the transaction of
acquisition, other than the acquisition notified by the Central Government in this behalf, of such
equity share is entered into on or after the 1st day of October, 2004 and such transaction is not
chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004
(23 of 2004).]
6[Provided
also that nothing contained in this clause shall apply to any income arising from
the transfer of long-term capital asset, being an equity share in a company or a unit of an equity
oriented fund or a unit of a business trust, made on or after the 1st day of April, 2018.]
7[Explanation.—For the purposes of this clause,—
(a) “equity oriented fund” means a fund—
(i) where the investible funds are invested by way of equity shares in domestic companies
to the extent of more than sixty-five per cent.. of the total proceeds of such fund; and
(ii) which has been set up under a scheme of a Mutual Fund specified under
clause (23D):
Provided that the percentage of equity share holding of the fund 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 same meaning as assigned to it in
clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
the land pooling ownership certificate issued under the scheme to the assessee in
respect of land or building or both referred to in clause
the reconstituted plot or land, as the case may be, received by the assessee in lieu of land
or building or both referred to in clause
in accordance with the scheme, if such plot or land, as
the case may be, so received is transferred within two years from the end of the financial year in
which the possession of such plot or land was handed over to him;]
any income arising from the transfer of a long-term capital asset, being an equity share in a
company or a unit of an equity oriented fund 1[or a unit of a business trust] where—
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:
2[Provided that the income by way of long-term capital gain of a company shall be taken into
account in computing the book profit and income-tax payable under section 115JB:]
3* * * * *
4[Provided also that nothing contained in sub-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.]
5[Provided also that nothing contained in this clause shall apply to any income arising from
the transfer of a long-term capital asset, being an equity share in a company, if the transaction of
acquisition, other than the acquisition notified by the Central Government in this behalf, of such
equity share is entered into on or after the 1st day of October, 2004 and such transaction is not
chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004
(23 of 2004).]
6[Provided
also that nothing contained in this clause shall apply to any income arising from
the transfer of long-term capital asset, being an equity share in a company or a unit of an equity
oriented fund or a unit of a business trust, made on or after the 1st day of April, 2018.]
7[Explanation.—For the purposes of this clause,—
“equity oriented fund” means a fund—
where the investible funds are invested by way of equity shares in domestic companies
to the extent of more than sixty-five per cent.. of the total proceeds of such fund; and
which has been set up under a scheme of a Mutual Fund specified under
clause
“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);