9911796707
TMI Blog2025 (3) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... % on LTCG arising from the transfer of specified assets, which include equity shares of a company, units of an equity-oriented fund, or units of a business trust, provided certain conditions are fulfilled. Provision does not extend this benefit to debentures, even if they are listed and traded on a recognized stock exchange in India. The legislature has intentionally limited the scope of section 112A of the Act to specific securities and has not included debentures within its ambit. Since debentures are explicitly excluded from the concessional tax treatment under section 112A the correct rate of tax applicable on the LTCG from the redemption of Market Linked Debentures is 20% under section 112. AO/CPC had rightly applied the tax rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the applicable 10% rate as per section 112A of the Act. The assessee emphasizes that the debentures in question were listed and traded on a recognized stock exchange in India, and the transaction was duly settled through the stock exchange. Despite this, the AO assumed that the debentures were not routed through the exchange and charged an additional 10% tax, moving the total tax rate to 20% under section 112 of the Act. 7. The assessee provides proof of sale from the issuer, Centum Financial Services, and also attaches the BSE settlement confirmation to establish that the debentures were indeed traded on the stock exchange. Further, the assessee highlights that tax at 10% has already been paid, and the return of income has been submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 112A of the Act, or at the rate of 20% as applied by the AO under section 112 of the Act. 13.1 It is noted that section 112A provides a preferential tax rate of 10% on LTCG arising from the transfer of specified assets, which include equity shares of a company, units of an equity-oriented fund, or units of a business trust, provided certain conditions are fulfilled. However, the provision does not extend this benefit to debentures, even if they are listed and traded on a recognized stock exchange in India. The legislature has intentionally limited the scope of section 112A of the Act to specific securities and has not included debentures within its ambit. 13.2 I have also examined the assessee's argument that debentures qualify as "secu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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