Section 112A – Income Tax on Long Term Capital Gain

Section 112A – Income Tax on Long Term Capital Gain

Introduction to Section 112A – Income Tax on Long Term Capital Gain

 Vide Finance Bill 2018, the Government has come up with an insertion to section 112A under the Income Tax Act, 1961. 
The new section 112A has been inserted in order to levy long-term capital gain tax on the transfer of equity share, units of equity oriented funds and units of the business trust.

Impact with the amendment in Section 112 A

With effect from 1st April, 2018, provisions of section 10 (38) will not be applicable to any income arising from transfer of equity share, units of equity oriented funds and units of business trust.
From 1st April, 2018, provisions of section 112A shall be applicable to tax income arising from transfer of equity shares, units of equity oriented funds and units of business trust.

To enter the details for Capital Gain income on equity share, units of equity oriented mutual funds and units of the business trust follow the below given path:

Go into transactions → Capital Gain Head → select Type of asset equity/ preference share or equity oriented mutual funds or units of the business trust.



There is no requirement to enter ISIN code if you add a single consolidate entry for all the transactions made during the year. 
For enter a single consolidated entry a user required to check mark the path as highlighted in the image below.

Tools → Income tax options → Others do check mark on Point 43 ( Do not generate 112A schedule in XML file )



IF you want to do separate entries and number of capital gain entries are huge in numbers then you can export the CG excel Template given in the software and feed the data in that Template.

To export the Template Go into → Tools → Excel Template → Template capital Gain


Steps to import the Capital Gain template from software.

Go into transactions → Capital Gain head → Select Type of Asset as equity / preference share or equity oriented mutual funds → Import from Excel
option will get enabled. It is mandatory to mention transaction type before importing the excel sheet and transaction type.Also the excel sheet should be match with transaction type.



Click on "Yes" and browse the saved excel template.
You can recheck your entries from "View summary" option on the bottom of the screen.




Note: Mandatory fields for excel import in case of separate entries :

  1. Description
  2. Date of Sale
  3. Date of Purchase
  4. Sale Consideration
  5. Purchase cost
  6. STT Paid
  7. Listed/Unlisted
  8. Indexation Required
  9. STT Purchase
  10. Sale Consideration from buyer
  11. no of shares 
  12. Sale price per share 
  13. ISIN Code
  14. FMV per share


    • Related Articles

    • SECTION 54 EXEMPTION FOR CAPITAL GAINS

      SECTION 54 EXEMPTION FOR CAPITAL GAINS A person wanted to shift his residence due to certain reason, hence, he sold his old house and from the sale proceeds he purchased another house. In this case the objective of the seller was not to earn income ...

    • Tax calculation on long-term capital gains as per section 112A

      Tax Calculation on long-term capital gains as per section 112A Exemption for long-term capital gains arising from transfer of listed securities as referred to in Section 10(38) has been withdrawn by the Finance Act, 2018 w.e.f. Assessment Year ...

    • SECTION 54 F EXEMPTION FOR CAPITAL GAINS

      SECTION 54 F EXEMPTION FOR CAPITAL GAINS 54F. Capital gain on transfer of certain. capital assets not to be charged in case of investment in residential house.—(1) Where, in the case of an assessee being an individual, the capital gain arises from ...

    • Income Tax || Import capital gain data via Excel template

      Step 1: Navigate to the Transaction section and select "Capital Gain". Step 2: Choose the special Excel sheet made for Capital Gain from the options. Step 3: Fill in all the info about your capital gains into the Excel sheet. Step 4: Click the button ...

    • ZenIT || How to Calculate Income Tax Rebate under Section 87A for AY 2024-25

      A tax rebate on an income of Rs 7 lakh has been introduced in the New Tax Regime (applicable for FY 2023-24). The tax rebate under Section 87A for FY 2021-22 and FY 2022-23 (AY 2022-23 and AY 2023-24) remains the same. However, from FY 2023-24, the ...