Section 111a

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Juhi Agrawal (Querist)
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13 June 2012 Hi everyone,
I have a query regarding sec.111a of income tax act. My friend is NRI and have earned STCG on mutual fund some are debt oriented and others are equity oriented.
The income earned is Rs. 30000 which is under the basic exemption limit upto which no tax is liable. so he should file a return with no tax liability.
If im wrong please correct me.

AJAY

AJAY (Expert)
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13 June 2012 Dear Juhi,

The benefit for setting off taxable capital gain against the exemption limit is available only for RESIDENT assessee.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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13 June 2012 The STCG on redemption of units of equity oriented fund is taxable @ 15%.

The benefit of basic exemption limit against such income is NOT available to a non resident.

Accordingly, he will have to pay tax @ 15% on STCG arising from redemption of units of equity oriented fund.

The gain arising on redemption of un its of debt fund shall be taxed at slab rate. Since the same is less than the exemption limit, there will be no tax liability on the same.

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