[1][111A. Tax on short-term capital gains in certain cases.

(1) Where the total income of an assessee includes any income chargeable under the head Capital gains, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund[2][or a unit of a business trust] and

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

(b) such transaction is chargeable to securities transaction tax under that Chapter,

the tax payable by the assessee on the total income shall be the aggregate of

(i) the amount of income-tax calculated on such short-term capital gains at the rate of [3][fifteen per cent]; and

(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee :

Provided that in the case of an individual or a Hindu undivided family being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-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 short-term capital gains shall be computed at the rate of [4][fifteen per cent.].