Section 111A → Section 105
Tax on short-term capital gains in certain cases (Equity Shares)
Quick Answer
Section 111A of the Income Tax Act, 1961 (Tax on short-term capital gains in certain cases (Equity Shares)) corresponds to Section 105 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 111A
Provision Summary
Taxes Short-Term Capital Gains (STCG) on the sale of listed equity shares or equity-oriented mutual funds (where STT is paid) at a special rate of 15% (or 20% as per latest budgets).
Sec 105
Provision Summary
Retained under the new Special Rates chapter. The specific rate is directly integrated into the computation engine.
Key Changes & Highlights
- Deductions under Chapter VI-A are explicitly hardcoded to be unavailable against this income.
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Frequently Asked Questions
What does Section 111A of the Income Tax Act 1961 deal with?
Section 111A (Tax on short-term capital gains in certain cases (Equity Shares)) Taxes Short-Term Capital Gains (STCG) on the sale of listed equity shares or equity-oriented mutual funds (where STT is paid) at a special rate of 15% (or 20% as per latest budgets).
What is the new section number for Section 111A under the Direct Tax Code 2025?
Section 111A of the ITA 1961 maps to Section 105 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 111A under the new tax code?
Section 111A is marked as "Retained" with status "Modified". Impact: Very High - Drives the taxation of the entire retail intraday and short-term stock market ecosystem.
What are the key changes to Section 111A under DTC 2025?
Deductions under Chapter VI-A are explicitly hardcoded to be unavailable against this income.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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