Income Tax Act, 2025
Section 10: Subs. by Act 33 of 1996, s. 37, for “thirty per cent.” (w.e.f. 11997).
10. Subs. by Act 33 of 1996, s. 37, for “thirty per cent.” (w.e.f. 11997).
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2[Provided that where the tax payable in respect of any income arising from the transfer of a
long-term capital asset, 3[being listed securities (other than a unit)] 4[or zero coupon bond], exceeds ten
per cent of the amount of capital gains before giving effect to the provisions of the second proviso to
section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the
assessee:
5[Provided further that where the tax payable in respect of any income arising from the transfer of a
long-term capital asset, being a unit of a Mutual Fund specified under clause (23D) of section 10, during
the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, exceeds ten
per cent. of the amount of capital gains, before giving effect to the provisions of the second proviso to
section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the
assessee.]
6[Explanation.—For the purposes of this sub-section,—
7[(a) the expression “securities” shall have the meaning assigned to it in clause (h) of section 2 of
the Securities Contracts (Regulation) Act, 1956 (32 of 1956);
(aa) “listed securities” means the securities which are listed on any recognised stock exchange in
India;
(ab) “unlisted securities” means securities other than listed securities.
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(2) Where the gross total income of an assessee includes any income arising from the transfer of a
long-term capital asset, the gross total income shall be reduced by the amount of such income and the
deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross
total income of the assessee.
(3) Where the total income of an assessee includes any income arising from the transfer of a
long-term capital asset, the total income shall be reduced by the amount of such income and the rebate
under section 88 shall be allowed from the income-tax on the total income as so reduced.]
9[112A. Tax on longterm capital gains in certain cases.—(1) Notwithstanding anything contained
in section 112, the tax payable by an assessee on his total income shall be determined in accordance with
the provisions of sub-section (2), if—
(i) the total income includes any income chargeable under the head “Capital gains”;
(ii) the capital gains arise from the transfer of a 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;
(iii) securities transaction tax under Chapter VII of the Finance (No.2) Act, 2004 has,—
(a) in a case where the long-term capital asset is in the nature of an equity share in a
company, been paid on acquisition and transfer of such capital asset; or
of section 10, during
the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, exceeds ten
per cent. of the amount of capital gains, before giving effect to the provisions of the second proviso to
section 48, then, such excess shall be ignored for the purpose of computing the tax payable by the
assessee.]
6[Explanation.—For the purposes of this sub-section,—
7[
the expression “securities” shall have the meaning assigned to it in clause
of section 2 of
the Securities Contracts
Act, 1956 (32 of 1956);
“listed securities” means the securities which are listed on any recognised stock exchange in
India;
“unlisted securities” means securities other than listed securities.
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Where the gross total income of an assessee includes any income arising from the transfer of a
long-term capital asset, the gross total income shall be reduced by the amount of such income and the
deduction under Chapter VI-A shall be allowed as if the gross total income as so reduced were the gross
total income of the assessee.
Where the total income of an assessee includes any income arising from the transfer of a
long-term capital asset, the total income shall be reduced by the amount of such income and the rebate
under section 88 shall be allowed from the income-tax on the total income as so reduced.]
9[112A. Tax on longterm capital gains in certain cases.—
Notwithstanding anything contained
in section 112, the tax payable by an assessee on his total income shall be determined in accordance with
the provisions of sub-section
the total income includes any income chargeable under the head “Capital gains”;
the capital gains arise from the transfer of a 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;
securities transaction tax under Chapter VII of the Finance (No.2) Act, 2004 has,—
in a case where the long-term capital asset is in the nature of an equity share in a
company, been paid on acquisition and transfer of such capital asset; or