Section 112 in The Income Tax Act, 1961

112. [ Tax on long-term capital gains. [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).]

(1)Where the total income of an assessee includes any income, arising from the transfer of a long-term capital asset, which is chargeable under the head "Capital gains", the tax payable by the assessee on the total income shall be the aggregate of,-

(a)in the case of an individual or a Hindu undivided family ][being a resident] [ Inserted by Act 32 of 1994, Section 31 (w.e.f. 1.4.1995).],-

(i)[ the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been his total income; and [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).]

(ii)the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent.:

Provided that 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, such long-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 long-term capital gains shall be computed at the rate of twenty per cent.;

(b)in the case of a ][domestic company] [ Substituted by Act 32 of 1994, Section 31, for " company" (w.e.f. 1.4.1995).],-

(i)[ the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).]

(ii)the amount of income-tax calculated on such long-term capital gains at the rate of ][twenty per cent.] [ Substituted by Act 33 of 1996, Section 37, for " thirty per cent." (w.e.f. 1.4.1997).];

[* * *] [ Proviso and Explanation omitted by Act 22 of 1995, Section 23 (w.e.f. 1.4.1996).]

(c)[ in the case of a non-resident (not being a company) or a foreign company,- [ Inserted by Act 32 of 1994, Section 31 (w.e.f. 1.4.1995).]

(i)the amount of income-tax payable on the total income as reduced by the amount of such long-term capital gains, had the total income as so reduced been its total income; and

(ii)the amount of income-tax calculated on such long-term capital gains at the rate of twenty per cent.;]

(d)[] [ Clause (c) relettered as Clause (d) by Act 32 of 1994, Section 31 (w.e.f. 1.4.1995).] [in any other case ] [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).][of a resident] [Inserted by Act 32 of 1994, Section 31 (w.e.f. 1.4.1995).],-

(i)[ the amount of income-tax payable on the total income as reduced by the amount of long-term capital gains, had the total income as so reduced been its total income; and [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).]

(ii)the amount of income-tax calculated on such long-term capital gains at the rate of ][twenty per cent.] [ Substituted by Act 33 of 1996, Section 37, for " thirty per cent." (w.e.f. 1.4.1997).]:

[* * *] [ Proviso and Explanation omitted by Act 22 of 1995, Section 23 (w.e.f. 1.4.1996).][Provided that where the tax payable in respect of any income arising from the transfer of a long-term capital asset,] [Inserted by Act 27 of 1999, Section 57 (w.e.f. 1.4.2000).] [being listed securities or unit] [ Substituted by Act 10 of 2000, Section 49, for " being listed securities" (w.e.f. 1.4.2000).] [or zero coupon bond] [ Inserted by Act 18 of 2005, Section 33 (w.e.f. 1.4.2006).][, 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.] [Inserted by Act 27 of 1999, Section 57 (w.e.f. 1.4.2000).][Explanation. - For the purposes of this sub-section,-

(a)"listed securities" means the securities-

(i)as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956); and

(ii)listed in any recognised stock exchange in India;

(b)"unit" shall have the meaning assigned to it in clause (b) of Explanation to section 115-AB.]

(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.] [Inserted by Act 18 of 1992, Section 53 (w.e.f. 1.4.1993).]