# Incomes Taxed at Special Rates (Irrespective of Regime)

Certain incomes carry fixed special tax rates that apply regardless of the regime (default or optional) and are the same for all persons (individuals, companies, firms, societies). They are applied to the relevant income component separately from slab income.

## The special-rate table

Section	Income	Rate
112	LTCG (other than 112A): land/building by resident Ind/HUF acquired before 23.7.2024	Lower of 20% with indexation or 12.5% without indexation
112	LTCG on any other capital asset	12.5% without indexation
112	LTCG on unlisted securities/shares of closely held cos by non-residents	12.5% without indexation & forex fluctuation
112A	LTCG on equity shares / equity-oriented funds / business trust units (STT paid)	12.5% on LTCG exceeding ₹1.25 lakh
111A	STCG on equity shares / equity funds / business trust units (STT paid)	20%
115BB	Winnings — lottery, crossword, horse races, card games, gambling, betting	30%
115BBJ	Net winnings from online games	30%
115BBE	Unexplained income/expenditure u/s 68–69D	60%

## Unutilised Basic Exemption Limit (BEL)

For resident Individuals and HUFs only, any unutilised BEL can be set off first against STCG u/s 111A, then against LTCG u/s 112 / 112A.

No such set-off against 115BB, 115BBJ, or 115BBE.

## Section 87A rebate restrictions

Rebate not available for 112A LTCG under the OTR.
Rebate not available for all special incomes under the DTR.

## Section 115BBE — the harshest charge

Aspect	Detail
Tax rate	60%
Surcharge	25% of tax
Effective rate	78% (60% tax + 25% surcharge + 4% cess on tax+surcharge)
Basic exemption	Not allowed
Allowances/expenditure	None allowed
Set-off of losses	No set-off against income u/s 68, 69, 69A, 69B, 69C, 69D

Worked example

### Example 1

Example (unutilised BEL set-off): A resident individual (regular regime) has only ₹1,00,000 of normal income and ₹4,00,000 STCG u/s 111A. The BEL is ₹2,50,000; ₹1,00,000 is used against normal income leaving ₹1,50,000 unutilised. This ₹1,50,000 can be set off against the 111A STCG, so only ₹2,50,000 of STCG is taxed at 20%.

### Example 2

Example (112A LTCG): An investor has LTCG of ₹3,00,000 on listed equity shares (STT paid). Only the amount exceeding ₹1.25 lakh is taxed: (₹3,00,000 − ₹1,25,000) = ₹1,75,000 × 12.5% = ₹21,875.

### Example 3

Example (115BBE effective rate): Unexplained cash credit of ₹10,00,000 is taxed at 60% = ₹6,00,000; surcharge 25% = ₹1,50,000; cess 4% on ₹7,50,000 = ₹30,000. Total = ₹7,80,000, i.e. 78% of the income, with no deduction and no set-off.

⚠️ Common exam mistakes

Setting off unutilised BEL against 115BB/115BBJ/115BBE — only 111A then 112/112A (and only for resident Ind/HUF) qualify.
Claiming 87A rebate on 112A LTCG (OTR) or on any special income (DTR) — it is not available.
Taxing the full 112A LTCG instead of only the amount exceeding ₹1.25 lakh.
Forgetting the 115BBE effective rate is 78% because of the flat 25% surcharge plus cess, and that no losses can be set off against 68–69D incomes.
Using the old 15% STCG / 10% 112A rates — current rates are 20% (111A) and 12.5% (112/112A).

Reference: Sections 111A, 112, 112A, 115BB, 115BBJ, 115BBE — Income-tax Act, 1961

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Incomes taxable at special rates irrespective of regime (Sections 111A, 112, 112A, 115BB, 115BBJ, 115BBE)

Worked example

⚠️ Common exam mistakes