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Long term gains on listed shares and equity funds above ₹1,25,000 a year are taxed at 12.5% under Sec 112A for transfers from 23 July 2024. The first ₹1,25,000 is exempt. Holding must be more than 12 months.
ITR
Long term gains on equity and the ₹1.25 lakh exemption
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Provisions
Sec 112A (now Sec 198); Sec 2(42A) (now Sec 2(101))
Analysis
Here the taxable part is ₹2,10,000 minus ₹1,25,000, which is ₹85,000; tax is ₹10,625 plus cess, about ₹11,050. The exemption is one ₹1,25,000 for the year, not per fund. Long term losses on equity reduce the gain before the exemption. Schedule 112A asks for details, and scrip-wise entries are needed for shares bought before 1 February 2018.
Close
- Total all long term equity gains for the year.
- Subtract long term losses, then ₹1,25,000.
- Compute 12.5% plus cess.
- Fill Schedule 112A and Schedule CG.
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