Tax on short term equity gains treated separately, with fixed rate treatment and adjusted taxable income for deductions and rebate. A new provision prescribes a separate tax regime for short term capital gains on equity shares and units of equity oriented funds subject to securities transaction tax, requiring a fixed rate tax on those gains and ordinary income tax on the balance of total income after excluding such gains; it applies only to sales after the Finance Act provisions commence and to transactions chargeable to securities transaction tax. The provision allows reduction of gains against the basic exemption for certain resident individuals/HUFs and directs that Chapter VI A deductions and the rebate are to be computed after excluding those gains.