Short term capital gain on shares

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Monica Punjabi (Querist)

26 July 2017 Individual has total interest income(IFOS) of less than Rs 100000 and short term capital gain on shares is Rs 8000. What will be the tax liability?

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

26 July 2017 short term capital gains are added to the total income and are taxed on the rates applicable to the income after applicable deductions. Here, the total income is Rs.1.08 lacs which is less than the basic exemption limit of Rs.2.5 lacs and hence not taxable

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)

26 July 2017 I overlooked the point that the short term capitalgains was from sake of shares. Usually, the short term capital gains from shares are taxed at 15% irrespective of the tax slab. There's however a provision. If the income other than the short term capital gains is less than income not chargeable to tax, the shortfall can be adjusted against short term capital gains. Here, Rs.2.5 lacs minus Rs.1 lacs results in Rs.1.5 lacs which can be adjusted against short term capita gains Rs.0.08 lacs. This effectively means no tax is payable

Monica Punjabi

Monica Punjabi (Querist)

27 July 2017 Thanks For Clarification!!

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