# Sections 112A & 112 — Tax Rates on LTCG
## Section 112A — LTCG on STT-Paid Listed Securities
Applicable on LTCG from:
- Equity shares (listed)
- Unit of Equity Oriented Fund
- Unit of Business Trust
Tax Rate: 12.5% on LTCG exceeding ₹ 1,25,000
Key Conditions / Points:
1. LTCG up to ₹ 1,25,000 in aggregate is exempt from tax (the exemption is applied while computing tax — the gross figure still appears under "Capital Gains" head).
2. Equity shares must be listed both at the time of purchase and sale.
3. STT must be paid on both buy and sell (for equity shares).
### Cost of Acquisition (if purchased on or before 31.1.2018) — Grandfathering
COA = Lower of (Sale Consideration, Higher of (FMV as on 31.1.2018, Actual Purchase Price))
### FMV as on 31.1.2018
- Equity Shares: Highest trading price on 31.1.2018
- Equity Oriented Fund / Business Trust Unit:
- If listed on 31.1.18 → Highest trading price on 31.1.18
- If not listed → Net Asset Value (NAV) on 31.1.18
## Section 112 — LTCG on Other Assets
Tax Rate: 12.5% (without indexation)
### Special Option for Resident Individual / HUF
For LTCG on land and building acquired before 23.7.2024, the resident Individual/HUF may opt for:
- 12.5% without indexation, OR
- 20% with indexation (whichever is more beneficial)
This option is only for tax computation; the Income under "Capital Gains" head is shown without indexation.
## Indexed Cost of Acquisition
ICOA = (COA / Index of year of purchase) × Index of year of transfer
CII: P.Y. 2001-02 = 100; P.Y. 2025-26 = 376
If asset purchased before 1.4.2001, use CII = 100 (year 2001-02).
## Other Points (Common to 111A / 112A / 112)
- No Chapter VI-A deduction.
- Basic exemption limit benefit is available only to a Resident Individual / HUF (first from other income, then from 111A/112A/112 income).