Certain types of income :

However, in respect of certain types of income, as mentioned below, the Income-tax Act, 1961 has prescribed specific rates–

(1) Section 112 has prescribed the rate of tax @20% in respect of long term capital gains. (For details, refer Chapter 7 on ―Capital gains‖)

(2) Section 111A provides for a concessional rate of tax (i.e. 15%) on the short -term capital gains on transfer of-

(i) an equity share in a company or

(ii) a unit of an equity oriented fund or

(iii) a unit of a business trust

The conditions for availing the benefit of this concessional rate are –

(i) the transaction of sale of such equity share or unit should be entered into on or after 1.10.2004 and

(ii) such transaction should be chargeable to securities transaction tax.

(3) Section 115BB prescribes the rate of tax @30% for winnings from-

(i) any lottery; or

(ii) crossword puzzle; or

(iii) race including horse race; or

(iv) card game and other game of any sort; or

(v) gambling or betting of any form.