CA Sukrati Agrawal
1. Both sections covers following Long Term Capital Asset:-
2. Both sections determine tax on long term capital gains and falls under chapter XII of the Income Tax Act, 1961.
3. First proviso in both the sections is same which is related to benefit of slab rate in case of Individual and HUF, being a resident.
4. Deductions under Chapter-VIA are not available in both sections.
5. Both sections have one common tax rate @ 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:-
|2.||Condition of payment of STT||Applies on transfer of LTCA whether STT is paid or not.||Applies only when following conditions are satisfied:-|
|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)||Yes||No|