Doubt in a provision

As per Section 112 of the Income-tax Act, 1961, the special tax rate of 12.5% or 20% applies to individuals and HUFs who are residents in India.

Resident Status: To be eligible for this special tax rate, the individual or HUF must be a resident in India as per Section 6 of the Income-tax Act, 1961. This means they must meet the residency criteria, which includes:

1. *Physical presence*: Being physically present in India for at least 182 days in the financial year.

2. *Intent to reside*: Having an intent to reside in India. Non-Resident Status: If the individual or HUF is a non-resident, the special tax rate under Section 112 will not apply. Instead, the tax rates applicable to non-residents will apply.

 Key Points: 1. *Resident status*: The individual or HUF must be a resident in India to be eligible for the special tax rate.

2. *Special tax rate*: The special tax rate of 12.5% or 20% applies to long-term capital gains from the transfer of land or building acquired before July 23, 2004, and sold on or after July 23, 2004.