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capital gain

Rooba Thilak (17 Points)

17 May 2018

what is the meaning of short term capital gain under section 111a?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (184844 Points)
Replied 17 May 2018

Section 111A is applicable to any short-term gains made from investments in equity or equity-based mutual funds. For such instruments, short-term is considered as 1 year. As per Section 111A, such short-term capital gains are taxed at a flat rate of 15%.

"equity oriented fund" means a fund—

(i) where the investible funds are invested by way of equity shares in domestic companies to the extent of more than sixty-five per cent of the total proceeds of such fund; and

(ii) which has been set up under a scheme of a Mutual Fund specified under clause (23D):

Provided that the percentage of equity share holding of the fund shall be computed with reference to the annual average of the monthly averages of the opening and closing figures;