Tax on capital gains in case of companies
Tax on capital gains in case of companies
115. Where the total income of a company includes any income chargeable under the head ‘Capital gains’ (whether such gains relate to short-term capital assets or to other capital assets), the tax payable by it shall be—
1[(a) the amount of income-tax equal to the aggregate of—
(1) the amount of income-tax calculated at the rate of twelve and a half per cent on the amount of capital gains, if any, chargeable under sub-section (2) of section 45; and
(2) the amount of income-tax with which it would have been chargeable had its total income been reduced by the amount of capital gains referred to in sub-clause (1);
(b) the amount of super-tax equal to the aggregate of—
(1) the amount of super-tax calculated on the amount of capital gains relating to capital assets other than short-term capital assets included in its total income—
(i) at the rate of fifteen per cent on so much of the amount of such capital gains as relate to buildings or lands or any rights in buildings or lands; and
(ii) at the rate of five per cent on the balance of such capital gains, if any [excluding capital gains, if any, referred to in sub-clause (1) of clause (a)]; and
(2) the amount of super-tax with which it would have been chargeable had its total income been reduced by the amount of capital gains relating to capital assets other than short-term capital assets included in its total income.]]
1. Substituted by the Finance Act, 1964, w.e.f. 1-4-1964. Prior to their substitution, clauses (a) and (b) read as under :
“(a) the amount of income-tax with which it is chargeable on its total income;
(b) the amount of super-tax equal to the aggregate of the amount of super-tax calculated at the rate of five per cent on the amount of the capital gains relating to capital assets other than short-term capital assets included in the total income and the amount of super-tax with which it would be chargeable had its total income been reduced by the amount of such aforesaid capital gains.”
[As amended by Finance Act, 1964]