query related to sec 111A and provisions of it....

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This query is : Resolved

ameya (Querist)

13 July 2010 an individual not a senior citizen has following sources of income..

CASE 1
other sources- 100000
short term capital gain on shares- 50000

CASE 2
other sources- 200000
stcg on shares- 100000

CASE 3
other sources- 50000
stcg on shares- 200000

tell me the tax on such income in all the 3 cases..

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 July 2010 1 - No tax
2 - on other income = 40000 * 10% = 4000
on STCG = 100000 * 15% = 15000

total tax = 19000

3 - total income 250000

STCG after basic exemption = 90000 * 15% = 13500

Add edcuation cess

ameya

ameya (Querist)

13 July 2010 aditya but the provisions to sec 111a says that if ur income other that stcg is less that exemption limit.. then on the balance stcg after adjusting stcg in the exemption limit will be taxed @ 10%.. pls suggest/

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 July 2010 The rate out there in the provision has not been updated in the section and if u go to the income tax website to the act you will find this where 10% is written

*Word “fifteen” need be substituted for “ten”.

And also if the same is fifteen then only it makes any sense. Otherwise there is no sense in the section.

ameya

ameya (Querist)

13 July 2010 can i get ur number. there r two rates in this section. i want to talk to u.. pls 9821376917

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 July 2010 First of all never give ur number in a public forum like this.

It can be misused. So i request u to modify ur quote.

If u are going by the section then I then it would be like this.

Take STCG from shares of Rs. 10,00,000/-

So if other income is below Rs. 160,000/- for male individuals say Rs. 159,000/- then tax on STCG u/s 111A will be at the rate of 10% as per the section

and if other income is above Rs. 160,000/- for male individuals say Rs. 161,000/- then tax on STCG u/s 111A will be at the rate of 15% as per the section.

So this makes a weird interpretation of the section.

So Word “fifteen” need be substituted for “ten” in the section and then read.

Aditya Maheshwari

Aditya Maheshwari (Expert)

13 July 2010 I have posted this query on the forum section also.

Lets see if someone replies.
https://www.caclubindia.com/forum/a-weird-section-111a-92605.asp

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