Doubt in a provision

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6 Points Joined March 2025

In sec 112 thera is a point that for individual or huf transfers long term land/building being a capital asset acquired before 23/7/24 and sold on or after 23/7/24

Than tax shall be 12.5% without indexation or 20% with indexation whichever benefits the assessee

My question is that individual/HUF should be a resident or not ?

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On 19 March 2025 at 22:41 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

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.

 

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On 20 March 2025 at 15:31


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