## Special and Concessional Tax Rates — Overview

### A. Special Tax Rates [COMPULSORY]

Section	Type of Income	Rate
111A	STCG on Certain Assets (STT-paid equity etc.)	20%
112A	LTCG on Certain Assets — upto ₹1.25 lakh exempt, excess taxed	12.5%
112	LTCG on Other Assets	12.5%
115BB	Winnings from lotteries, crossword, races, gambling, etc.	30%
115BBJ	Winnings from Online Games	30%
115BBE	Undisclosed Income (Indian Block Money)	60%

Note: 111A / 112A / 112 are studied under Capital Gains; 115BB / 115BBJ / 115BBE under Other Sources.

### B. Concessional Tax Rates [OPTIONAL]

Section	Applicable to
115BAA	Domestic Company
115BAB	New Manufacturing Domestic Company / Electricity Generation Company
115BAC	Individual / HUF / AOP / BOI / AJP (default regime)
115BAD	Resident Co-operative Society
115BAE	New Manufacturing Resident Co-operative Society

### Key Conceptual Distinction

Special rates are compulsory — the assessee has no option.
Concessional rates are optional — taxpayer can choose, generally by surrendering certain deductions/exemptions.

⚠️ Common exam mistakes

Treating special rate sections (111A, 112, 112A, 115BB etc.) as optional — they are mandatory.
Taxing winnings from lotteries/online games at slab rates — they must be taxed at flat 30% under Sec 115BB/115BBJ irrespective of total income.
Forgetting that 60% rate u/s 115BBE on undisclosed income has additional surcharge implications.

Reference: Sections 111A, 112, 112A, 115BB, 115BBJ, 115BBE, 115BAA, 115BAB, 115BAC, 115BAD, 115BAE — Income Tax Act, 1961

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Overview of Special and Concessional Tax Rates

⚠️ Common exam mistakes