Special provision for computation of capital gains in case of Market Linked Debenture - (New) Section 76 / (Old) Section 50AA

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....• (b) an unlisted bond or an unlisted debenture which is transferred or redeemed or matures on or after the 23rd July, 2024. • shall be treated as short-term capital gains. Manner of Computation of Capital Gain  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 in connection with such transfer or redemption or maturity. ....

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.... 50AA • where the capital asset- (a) is a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture; or (b) is an unlisted bond or an unlisted debenture which is transferred or redeemed or matures on or after the 23rd day of July, 2024, Computation of Capital Gain  • The full value of consideration received or accruing as a result of the transfer or redemption or maturity of such debenture or unit or bond as reduced by- (i) the cost of acquisition of the debenture or unit or bond; and (ii) the expenditure incurred wholly and exclusively in connection with such transfer or redemption or maturity, No deduction shal....

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....ure" means a security by whatever name called, which has an underlying principal component in the form of a debt security and where the returns are linked to market returns on other underlying securities or indices and include any security classified or regulated as a Market Linked Debenture by the Securities and Exchange Board of India; (ii) Upto 31.03.2026 - "Specified Mutual Fund" means a Mutual Fund by whatever name called, where not more than 35% of its total proceeds is invested in the equity shares of domestic companies: Provided that percentage of equity shareholding held in respect of the Specified Mutual Fund shall be computed with reference to the annual average of the daily closing figures. (iii) ....