# The Finance Act, 1971, Section 25: Substitution of new section for section 115

- Act: The Finance Act, 1971 (Act 32 of 1971)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-1971/section/25/

## Text

Substitution of new section for section 115. 25. For section 115 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 1972, namely.— Tax on capital gains in case of companies. '115. Where the total income of a company includes any income chargeable under the head "Capital gains" relating to capital assets other than short-term capital assets (such income being hereinafter referred to as long-term capital gains), the income-tax payable shall be the aggregate of— (i) the amount of income-tax calculated on the amount of long-term capital gains included in the total income— (a) at the rate Of forty-five per cent on so much of the amount of such long-term capital gains as relate to buildings or lands Or any rights in buildings or lands; and (b) at the rate of thirty-five per cent on the balance of such long-term capital gains, if any; and (ii) the amount of income-tax with which it would have been chargeable had its total income been reduced by the amount of long-term capital gains referred to in clause (i).'. [Finance (No. 2) Act, 1971] © Copyright. Taxmann Publications Pvt. Ltd.

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