Income Tax Rates for Short Capital Gains and Long Term Capital Gains and other Incomes. These rates are based on secondary higher education cess, education cess and surcharge. The Tax Rates for different sources of Income for various categories of taxpayers are given here. However, the companies are taxed at fixed rate, except for certain specified Incomes.
Section 111A of Income Tax Act 1961
Section – 111A of Income Tax Act, 1961-2014 is based on Tax on short-term capital gains in some instances. This Section shall not be applicable in respect of any income arising from the transfer of units of a business trust which were acquired by the assessee in exchange of the shares of a particular purpose vehicle.
Short-term capital gains Tax Rate:
The Tax Rate for Short Term Capital gains under section 111A is 15.00%.
Section 112 of Income Tax Act 1961
Section 112 of Income Tax Act, 1961-2014 is based on Tax on long-term capital gains. The long term capital includes income arising from transfer of a long-term capital asset, the tax payable by the taxpayer on the total income shall be the aggregate of these following:
- In the case of an individual or a Hindu undivided family.
- In the case of a domestic company.
- In the case of a non-resident not being a company or a foreign company.
- In any other case of a resident.
Long-Term Capital Gains Tax Rate:
The Rate of Long Term Capital Gains under Section 112 is 20.00%.
Computation of Income and Tax Under Various Sections
|Sections||Nature of Income||Income Tax Rate|
Section 115A (1)(a)
|115A (1)(a)(i): Dividend received by a foreign company or a non-resident non-corporate assessee (not applicable in a case of dividends referred to in section 115-O).||20.00%|
|115A (1)(a)(ii): Interest received by a foreign company/ non-resident non-corporate assessee from Government/ an Indian concern on money borrowed or debt incurred by Government/ the Indian concern in foreign currency.||20.00%|
|115A (1)(a)(iia): Interest received from an infrastructure debt fund referred to in Section 10(47).||5.00%|
|115A (1)(a)(iiaa)&(iiab): Interest as referred to in Section 194LC/194LD.||5.00%|
|Income of a foreign financial organisation on transfer of units purchased in foreign country being long term capital gains||10%|
|Income from Global Deposit Receipts bonds or on bonds of a public sector company sold by the Government and purchased in foreign currency or long term capital gain arising from their transfer. It is not applicable in the case of dividends referred to in Sec. 115-O.||10%|
|Income from Global Depository Receipts held by a resident individual who is an employee of an Indian company engaged in information technology services/software.|
|Dividend on Global Depository Receipts issued under employees stock option scheme & purchased in foreign currency||10.00%|
|Long-term capital gain on transfer of such receipts||10.00%|
|Income in respect of listed securities received by a Foreign Institutional Investor as specified by the Govt.|
|Short-term capital gain covered by section 111A||15.00%|
|Any other short-term capital gain||30.00%|
|Long-term capital gain||10.00%|
|Other income and it is not applicable in the case of dividends referred to in section 115-O.||20.00%|
|Profits and gains of life insurance business||12.50%|
|Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature||30.00%|
Section 115BBA(1) (a)/(b)
|Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sports association by way of guarantee money||20.00%|
|Income of a non-resident foreign citizen being an entertainer for performance in India||20.00%|
|Income from foreign exchange assets and capital gains of non-resident Indian|
|Tax on book profits of certain companies (Assessment year 2010-11)||15.00%|
|Profits and gains of business in the case of a trust||30.00%|
|Income of private discretionary trust where shares of beneficiaries are Indeterminate||30.00%|
|Income of an oral trust||30.00%|
|Income of a firm||30.00%|
|Income of an association of persons or body of individuals if shares of members are unknown||30.00%|
Hence, these are the Income Tax Rates for Various Categories under different Income Tax Sections.