Section 111A of the 1961 Act → Section 196 of the 2025 Act
Short-term gains on listed equity.
Quick answer
Section 111A of the Income-tax Act, 1961 corresponds to Section 196 of the Income-tax Act, 2025. Relationship: Revised. Correspondence verified against both Acts.
How it works
Short-term gains on listed equity shares and equity fund units (with securities transaction tax paid) are taxed at 20%.
Example
₹5 lakh of short-term listed share gains: ₹1,04,000 including cess.
What you need to do
Investor: check the holding period (12 months) before selling, since it changes the rate.
What changed?
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 111A111A. (1) Where the total income of an assessee includes any income chargeable under the head "Capital gains", arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust and— (a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and (b) such transaction is chargeable to securities transaction tax under that Chapter, 18[the tax payable by the assessee on the total income shall be the aggregate of— (i) the amount of …
2025 · Section 196196. (1) Where the total income of an assessee includes any income chargeable under the head “Capital gains”, arising from the transfer of a short-term capital asset— (a) being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust; and (b) the transaction of sale of such equity share or unit is chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004), then, the tax payable by the assessee on the total income, subject to the provisions of sub-section (2), shall be the aggregate of— (i) …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
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Meet the expert
CS Prashant Kumar
Company Secretary & Compliance Officer
Global Horizons Capital Advisors (IFSC) Private Limited — an IFSCA-licensed investment banker
Published in The Chartered Accountant (Jun 2025, Jan 2025, Mar 2024) and Chartered Secretary (Aug 2023)
Prashant Kumar is a seasoned Company Secretary and corporate governance strategist with more than 13 years of experience advising large corporates, promoter-led groups and global businesses on compliance, regulatory risk and board governance. In GIFT IFSC, the IFSCA regime is his day job rather than a research topic.