Section 112A → Section 107
Tax on long-term capital gains in certain cases (Equity Shares)
Quick Answer
Section 112A of the Income Tax Act, 1961 (Tax on long-term capital gains in certain cases (Equity Shares)) corresponds to Section 107 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 112A
In the 1961 statute, Section 112A deals with tax on long-term capital gains in certain cases (equity shares). Taxes LTCG on listed equity shares/funds exceeding Rs. 1 Lakh at 10% (or 12.5% as per recent budgets) without indexation.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 112A is retained and renumbered as Section 107 of the Income-tax Act, 2025. Retained. The initial exemption limit (e.g., Rs. 1.25 Lakhs) is dynamically adjustable via the Finance Act schedules rather than requiring a core Act amendment.
The transition impact on Section 112A is assessed as Very High. Affects all long-term retail and institutional stock market investors.
Sec 112A
Provision Summary
Taxes LTCG on listed equity shares/funds exceeding Rs. 1 Lakh at 10% (or 12.5% as per recent budgets) without indexation.
Sec 107
Provision Summary
Retained. The initial exemption limit (e.g., Rs. 1.25 Lakhs) is dynamically adjustable via the Finance Act schedules rather than requiring a core Act amendment.
Key Changes & Highlights
- Grandfathering calculation (for shares bought before Jan 31, 2018) is fully automated on the portal.
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Frequently Asked Questions
Which subject does Section 112A of the 1961 Act cover?
Section 112A of the Income Tax Act, 1961 covers tax on long-term capital gains in certain cases (equity shares). Taxes LTCG on listed equity shares/funds exceeding Rs. 1 Lakh at 10% (or 12.5% as per recent budgets) without indexation.
What is the new section number for Section 112A under the Income-tax Act, 2025?
Section 112A of the Income Tax Act, 1961 maps to Section 107 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. The initial exemption limit (e.g., Rs. 1.25 Lakhs) is dynamically adjustable via the Finance Act schedules rather than requiring a core Act amendment.
How does the Income-tax Act, 2025 affect Section 112A in practice?
The transition impact for Section 112A is rated Very High. Affects all long-term retail and institutional stock market investors.
What is new about Section 112A under the Income-tax Act, 2025?
Grandfathering calculation (for shares bought before Jan 31, 2018) is fully automated on the portal. These points are specific to Section 112A (Tax on long-term capital gains in certain cases (Equity Shares)).
Disclaimer: This mapping of Section 112A (Tax on long-term capital gains in certain cases (Equity Shares)) to Section 107 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 112A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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