Budget 2017 came with Concessional rate of 10% for transfer of Pvt Company Shares

It is proposed to clarify that the amendment made by the Finance Act, 2016 in Section 112 of the Income-tax Act providing for concessional rate of tax in respect of transfer of share of a private limited company shall be applicable retrospectively from assessment year 2013-14.

Above mentioned provisions as given in Draft Finance Bill 2017 is as given below:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of
section 111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,—
(i) in the case of every domestic company,––
(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of
such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;
(ii) in the case of every company other than a domestic company,––
(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of
such income-tax; and
(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:
Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore
rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as
income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable
as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total
income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

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