Section 112A - LTCG Tax on Listed Equity & Equity Mutual Funds
Long-term capital gains exceeding ₹1.25 lakh from sale of listed equity shares, equity-oriented mutual funds, or units of business trusts are taxed at 12.5% (from Budget 2024). STT must have been paid.
Key provisions
- Rate: 12.5% (increased from 10% by Finance Act 2024, effective July 23, 2024)
- Exemption: ₹1,25,000 per FY (increased from ₹1 lakh from FY 2024-25 onwards)
- STT (Securities Transaction Tax) must have been paid on both acquisition and transfer
- No indexation benefit available under this section
- Grandfathering: cost of acquisition for pre-Jan 31, 2018 shares = higher of actual cost or FMV as on Jan 31, 2018
- Losses under 112A can be set off against 112A gains only; carried forward for 8 years
FAQs
12.5% on gains exceeding ₹1,25,000 in a financial year. The first ₹1.25 lakh of LTCG from equity shares and equity mutual funds is tax-free. Note: this rate was increased from 10% by Budget 2024, effective July 23, 2024.
Use via API
GET/v1/tax-law/sections/by-2025-ref/112A
Programmatic access - free, no signup required. ISR-cached for 24 hours.
REQUEST · cURL
curl https://api.thynktax.com/v1/tax-law/sections/by-2025-ref/112A
RESPONSE · 200 OK
{
"act_2025_ref": "112A",
"old_reference": "Section 112A, Income Tax Act 1961",
"title": "Section 112A - LTCG Tax on Listed Equity & Equity Mutual Funds",
"category": "Capital Gains",
"limit_or_rate": "12.5% on LTCG above ₹1,25,000",
"applicable_to": "All assessees",
"effective_from": "2026-04-01"
}