Determination of Tax in certain special cases

Since all the incomes are not taxable at a same rate. The document provides a list of Capital Gains/Incomes arising out of certain securities eligible for special tax rates. It contains details with respect to the eligible assessee, security, or tax rates etc.

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The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents.

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“This document contains the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026.”

Determination of tax in certain special cases

Particulars	Section 111A	Section 112A	Section 115A	Section 115AB	Section 115AC	Section 115AD
Eligible Assessee	Any Assessee	Any Assessee	Non-Resident and Foreign Company	Overseas financial organization (Offshore Fund)	Non-Resident	Foreign Portfolio Investor and Specified Funds
Securities covered	• Equity shares • Units of equity-oriented mutual fund • Units of business trust	• Equity shares • Units of equity-oriented mutual fund • Units of business trust	-	Units of a mutual fund purchased in foreign currency.	• Foreign Currency Convertible Bonds (FCCBs) • Foreign Currency Exchangeable Bonds (FCEB) • Global Depository Receipts (GDRs) of an Indian company or Public Sector Undertaking (PSU)	All securities other than units covered under Section 115AB. Specified securities include: • Equity shares • Units of equity-oriented mutual fund • Units of business trust
Tax Rate on Income from covered securities	-	-	• 10% to 20% on dividend income, as the case may be • 4% to 20% on Interest Income, as the case may be • 20% on Royalty • 20% on Fees for Technical Services	10%	• 10% on Interest Income • 10% on Dividend Income	5% / 20% - FPI 10% - Specified Funds
Tax rate on long-term capital gains	-	• 12.5% Note: The tax shall be calculated on capital gains exceeding Rs. 1.25 lakh.	-	• 12.5%	• 12.5%	12.5% on long-term capital gains referred to in section 112A Note: The tax shall be calculated on capital gains exceeding Rs. 1.25 lakh. • 10%, in any other case
Tax rate on short-term capital gains	• 20%	-	-	-	-	20% on short-term capital gains referred to in section 111A • 30%, in any other case
Admissibility of deduction under Chapter VI-A	No	No	No, except under Section 80LA to a unit in IFSC and from royalty, and fees for technical services	No	No	No
Adjustment of basic exemption limit	Available to resident individuals and resident HUF only	Available to resident individuals and resident HUF only	No	No	No	No

[As amended by Finance Act, 2026]