Section 112 → Section 106
Tax on long-term capital gains
Quick Answer
Section 112 of the Income Tax Act, 1961 (Tax on long-term capital gains) corresponds to Section 106 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 112
Provision Summary
Taxes standard Long-Term Capital Gains (LTCG) on assets like real estate, unlisted shares, and gold at 20% with indexation (or 12.5% without indexation).
Sec 106
Provision Summary
Rates and indexation benefits restructured and simplified. The base LTCG rate for physical assets is standardized to reduce disputes.
Key Changes & Highlights
- Unlisted share taxation for non-residents heavily streamlined to attract Foreign Direct Investment (FDI).
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Frequently Asked Questions
What does Section 112 of the Income Tax Act 1961 deal with?
Section 112 (Tax on long-term capital gains) Taxes standard Long-Term Capital Gains (LTCG) on assets like real estate, unlisted shares, and gold at 20% with indexation (or 12.5% without indexation).
What is the new section number for Section 112 under the Direct Tax Code 2025?
Section 112 of the ITA 1961 maps to Section 106 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 112 under the new tax code?
Section 112 is marked as "Retained" with status "Modified". Impact: Critical - The foundational section for real estate and startup exit taxation.
What are the key changes to Section 112 under DTC 2025?
Unlisted share taxation for non-residents heavily streamlined to attract Foreign Direct Investment (FDI).
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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