For A.Y. 2026-27, short-term capital gains on sale of listed equity shares through a recognized stock exchange (STT paid on transfer) are taxable under section 111A at:
A15 per cent
B10 per cent
C20 per cent
D30 per cent
Answer & Solution
Correct answer: C. 20 per cent
1. Section 111A gives a concessional flat rate for STCG on listed equity shares, units of an equity-oriented fund and units of a business trust where STT is paid on the transfer.
2. For transfers on or after 23.7.2024 this concessional rate is 20%, and that is the rate printed for A.Y. 2026-27.
3. Therefore the STCG is taxed at 20% (plus cess), not at the normal slab rate.
_Source: ICAI CA Inter P3(A) Income-tax SM (May 2026), Ch 3 Unit 4 Capital Gains, PDF p. 80_
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