How to pay SCTG

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This discussion clarifies how to pay Short Term Capital Gains Tax (STCG) when your total income is below the exemption limit. Even with a capital gain, if your total income, including the gain, remains under £5 lakh, you are likely exempt from paying tax due to the rebate under Section 87A. It's important to file your return if your income exceeds the basic exemption limit, but tax liability may still be nil.

Puneet

Puneet (Querist)

04 August 2021 I have yearly income of 482000 thus i am exempt from income tax. I have Short term capital gain from Equities of 17000 in this assessment year. However out of 17000 only 5000 is real profit rest of money is gone in brokerage while buying and selling. Thus i need to pay 15% tax on my STCG but under which challan no on income tax site to deposit this 15% tax. And please tell if anything wrong in my assessment

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

04 August 2021 Yes, you are wrong add 5000 to 482000, your yearly income is below 5 lacs no need to pay any tax.
15% tax payable only for income above 5 lacs.

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Deepa B

Deepa B (Expert)

04 August 2021 You have to file your return as your income is more than basic exemption limit (Assuming that you are a resident individual and not a super senior citizen ).
Basic exemption limit for Senior citizens-3,00,000/- and Others- Rs.2,50,000/-
But in the given case, tax payable will be nil because tax liability arising due to capital gain is also covered in rebate u/s 87A as your total income is less than Rs.5,00,000/- . So no need to pay any tax

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