Special provision for computation of capital gains in case of Market Linked Debenture

Irrespective of anything contained in section 2(101) or section 72, the gains on the transfer or redemption or maturity, of a capital asset as mentioned in sub-section (2) shall be treated as short-term capital gains and shall be computed as per sub-section (3).

For the purposes of sub-section (1), the capital asset shall be— (a) a unit of a Specified Mutual Fund acquired on or after 1st April, or a Market Linked Debenture; or (b) an unlisted bond or an unlisted debenture which is transferred or redeemed or matures on or after the 23rd July, 2024.

For the purposes of sub-section (1), the short-term capital gains shall be computed as per the following formula:–– X = A – B – C, where,–– X = short-term capital gains; A = full value of consideration received or accruing as a result of the transfer or redemption or maturity of the debenture or unit or bond; B = the cost of acquisition of the debenture or unit or bond; and C = the expenditure incurred wholly and exclusively for such transfer or redemption or maturity.

No deduction shall be allowed for any sum paid as securities transaction tax as per Chapter VII of the Finance (No. 2) Act, 2004.

In this section,—