COMPARISON BETWEEN SECTION 112 AND SECTION 112A OF INCOME TAX ACT
- Long term capital gains under these two sections cover:
- Equity share in a company
- Unit of Equity Oriented Fund
- Unit of a business trust
- First proviso in both the sections relate to the benefit of slab rate in case of Individual and HUF, being resident.
- Deductions under Chapter-VIA are not available in both sections.
- Both sections have one common tax rate @ 10%.
Difference between section 112 and section 112A:
|Sr. 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.||
|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||YES||NO|