Section 112A of the 1961 Act → Section 198 of the 2025 Act
Long-term gains on listed equity.
Quick answer
Section 112A of the Income-tax Act, 1961 corresponds to Section 198 of the Income-tax Act, 2025. Relationship: Revised. Correspondence verified against both Acts.
How it works
Long-term gains on listed equity shares and equity fund units (with securities transaction tax paid) are taxed at 12.5% above a ₹1,25,000 yearly allowance.
Example
₹5 lakh of such gains: tax ₹48,750 including cess.
What you need to do
Investor: add up all such gains for the year; apply the allowance once.
What changed?
- It opens with “Irrespective of anything…” in place of “Notwithstanding anything…”.
- Read the complete new provision, including its conditions, exceptions and related provisions, when applying it.
The two texts, side by side
1961 · Section 112A112A. (1) Notwithstanding anything contained in section 112, the tax payable by an assessee on his total income shall be determined in accordance with the provisions of sub-section (2), if— (i) the total income includes any income chargeable under the head "Capital gains"; (ii) the capital gains arise from the transfer of a long-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; (iii) securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004) has,— (a) in a case where the long-term capital asset is in the nature of an equity share in …
2025 · Section 198198. (1) Irrespective of anything contained in section 197, the tax payable by an assessee on his total income shall be determined as per the provisions of sub-section (2), if— (a) the total income includes any income chargeable under the head “Capital gains”; (b) the capital gains arise from the transfer of a long-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; (c) securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004) has— (i) in a case where the long-term capital asset is in the nature of an equity share in a company, been paid …
Excerpts end with … where the provision continues. Last reviewed 24 October 2026.
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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.