Difference between Section 112 and Section 112A of Income Tax Act, 1961 1. Both sections cover the following Long Term Capital Asset:- Equity share in a company Unit of Equity Oriented Fund Unit of a business trust 2. Both the sections are related to tax on long-term capital and charged @ 10% subjecRead more
Difference between Section 112 and Section 112A of Income Tax Act, 1961
1. Both sections cover the following Long Term Capital Asset:-
Equity share in a company
Unit of Equity Oriented Fund
Unit of a business trust
2. Both the sections are related to tax on long-term capital and charged @ 10% subject to fulfilment of conditions specified therein.
S.No.
Particulars
Section 112
Section 112A
1.
What type of LTCA covers?
Applies to transfer of all Long Term Capital Assets defined as per section 2(29A) of the Act.
Applies to transfer of only following Long Term Capital Assets:-
Equity share in a company
Unit of Equity Oriented Fund
Unit of a business trust
2.
Condition of payment of STT
Applies on transfer of LTCA whether STT is paid or not.
Applies only when following conditions are satisfied:-
LTCA
STT Paid
On Acquisition
On Transfer
Equity share in a company
Yes
Yes
Unit of Equity Oriented Fund
No
Yes
Unit of a business trust
No
Yes
However, above conditions are not applicable if transfer covers under sub-section (3) or (4).
3.
Tax Rate
Tax Rate @ 20% or 10%
Tax Rate only @ 10% in excess of Rs. 1 lakh.
4.
Exemption of Rs. 1 lakh
No
Yes
5.
Applicability
Inserted by Finance Act, 1992
Inserted by Finance Act, 2018. Applicable w.e.f. 01-04-2019
6.
Relief u/s 87A
Yes
No
7.
Indexation benefit as per 2nd proviso to Section 48
Yes
No
8.
Mode of Computation of Capital Gain in foreign currency in case of NR (1st proviso to Section 48)
Difference between Section 112 and Section 112A of Income Tax Act, 1961 1. Both sections cover the following Long Term Capital Asset:- Equity share in a company Unit of Equity Oriented Fund Unit of a business trust 2. Both the sections are related to tax on long-term capital and charged @ 10% subjecRead more
Difference between Section 112 and Section 112A of Income Tax Act, 1961
1. Both sections cover the following Long Term Capital Asset:-
2. Both the sections are related to tax on long-term capital and charged @ 10% subject to fulfilment of conditions specified therein.
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