Income tax return ay 2015-2016

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2015 I have the following income:
Pension,Bank and FD interest: Rs 3.1 lakhs
Income from House property: Nil, as self occupied.
Short term capital Gains shares ( STTpaid): 1.2 lakhs.

I have Chapter VI deductionsas follows:
80C: 1.5 lakhs, 80TTA 10,000, and 80D.. 15000.
While filling the form electronically, the form is asking me to pay IT on the STCG at 15% i.e. 18000 plus 3% cess..

My understanding is that after deduction of Chapter VIA, my total income is 2.55lakhs ( 4.3 minus 1.75) . As a senior citizen, since this is less that 3.0. lakh limit, I thought I have no tax liability.
However the form is treating STCG as a separate entity and has calculated tax at 15% along with 3% cess.
Please clarify whether this is correct and whether I am liable to pay this tax. Thanks a lot in advance. An early response from our members will be gratefully accepted.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 July 2015 short term capital gains from share transactions are taxed at 15% with cess. That is a standard taxation done irrespective of your overall income liability.

Only way to avoid tax (and I am using the word avoid not plan) here is to show it as normal STCG instead of STCG from share transactions with STT payment

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