(1)Where the total income of an assessee includes any
income, arising from the transfer of a long -term capital asset, which is chargeable under the head “Capital
gains”, the tax payable by the assessee on the total income shall be the aggregate of, -
(a)in the case of an individual or a Hindu undivided family, 2[being a resident,] -
(i)the amount of income -tax payable on the total income as reduced by the amount of such
long-term capital gains, had the total income as so reduced been his total income; and
(ii)the amount of income -tax calculated on such long -term capital gains at the rate of twenty
per cent .:
Provided that where the total income as reduced by such long -term capita l gains is below the
maximum amount which is not chargeable to income -tax, then, such long -term capital gains shall
be reduced by the amount by which the total income as so reduced falls short of the maximum
amount which is not chargeable to income -tax and the tax on the balance of such long -term
capital gains shall be computed at the rate of twenty per cent .;
(i)the amount of income -tax payable on the total income as reduced by the amount of such
long-term capi tal gains, had the total income as so reduced been its total income; and
(ii)the amount of income -tax calculated on such long -term capital gains at the rate of
4[twenty per cent .]:
5* * * * *
2[(c) in the case of a non -resident (not being a company) or a foreign company, -
(i)the amount of income -tax payable on the total income as reduced by the amount of such
long-term capital gains, had the total income as so reduced been its total income; and
6[(ii) the amount of income -tax calculated on long-term capital gains [except where such gain
arises from transfer of capital asset referred to in sub -clause ( iii)] at the rate of twenty per cent .;
and]
(iii)the amount of income -tax on long -term capital gains arising from the transfer of a capital
asset, being 7[unlisted securities or shares of a company not being a company in which the public
are substantially interested ], calculated at the rate of ten per cent. on the capital gains in respect of
such asset as computed without giving effect to the f irst and second proviso to section 48 ;]]
8[(d)] in any other case 9[of a resident], -
(i)the amount of income -tax payable on the total income as reduced by the amount of
long-term capital gains, had the total income as so reduced been its to tal income; and
(ii)the amount of income -tax calculated on such long -term capital gains at the rate of
10[twenty per cent .; and]