Section 111A → Section 105
Tax on short-term capital gains in certain cases (Equity Shares)
Quick Answer
Section 111A of the Income Tax Act, 1961 (Tax on short-term capital gains in certain cases (Equity Shares)) corresponds to Section 105 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 111A
Under the Income Tax Act, 1961, Section 111A governs tax on short-term capital gains in certain cases (equity shares). Taxes Short-Term Capital Gains (STCG) on the sale of listed equity shares or equity-oriented mutual funds (where STT is paid) at a special rate of 15% (or 20% as per latest budgets).
From 1st April 2026, the same subject sits at Section 105 of the Income-tax Act, 2025 — retained and renumbered as Section 105 of the Income-tax Act, 2025. Retained under the new Special Rates chapter. The specific rate is directly integrated into the computation engine.
For Section 111A, the practical impact is rated Very High. Drives the taxation of the entire retail intraday and short-term stock market ecosystem.
Sec 111A
Provision Summary
Taxes Short-Term Capital Gains (STCG) on the sale of listed equity shares or equity-oriented mutual funds (where STT is paid) at a special rate of 15% (or 20% as per latest budgets).
Sec 105
Provision Summary
Retained under the new Special Rates chapter. The specific rate is directly integrated into the computation engine.
Key Changes & Highlights
- Deductions under Chapter VI-A are explicitly hardcoded to be unavailable against this income.
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Frequently Asked Questions
What is Section 111A of the Income Tax Act, 1961 about?
Section 111A of the Income Tax Act, 1961 covers tax on short-term capital gains in certain cases (equity shares). Taxes Short-Term Capital Gains (STCG) on the sale of listed equity shares or equity-oriented mutual funds (where STT is paid) at a special rate of 15% (or 20% as per latest budgets).
Which section replaces Section 111A in the Income-tax Act, 2025?
Section 111A of the Income Tax Act, 1961 maps to Section 105 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained under the new Special Rates chapter. The specific rate is directly integrated into the computation engine.
What is the impact of the change to Section 111A under the new tax code?
The transition impact for Section 111A is rated Very High. Drives the taxation of the entire retail intraday and short-term stock market ecosystem.
What should I watch out for when Section 111A moves to the 2025 code?
Deductions under Chapter VI-A are explicitly hardcoded to be unavailable against this income. These points are specific to Section 111A (Tax on short-term capital gains in certain cases (Equity Shares)).
Disclaimer: This mapping of Section 111A (Tax on short-term capital gains in certain cases (Equity Shares)) to Section 105 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 111A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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