STCG CALCULATION

This query is : Resolved

vishal (Querist)
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27 September 2008 if i have a salary income of Rs.80,000/- and short term capital gain is Rs.70,000/- (STT paid)

should i pay tax on Rs.70,000/- @ 10%

Should I pay tax on Rs.40,000/- @ 10% (i.e. 70,000+80,000-110000 exemption limit)

Should i reduce STT from my capital gain income

What benefit can i gain from STT paid

PIYUSH JAIN

PIYUSH JAIN (Expert)
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27 September 2008 Dear Vishal,
If you are talking about last year, exempyion limit was 110000.
As per IT act you can reduce your STCG amount from your income upto your exemption limit.
So for rest 40000 you have to pay tax and according to sec 88 E you can get rebate for STT paid.

Ravikumar.G

Ravikumar.G (Expert)
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27 September 2008 Assuming this is for FY 07-08

Tax on STCG = 10% [Total Income including STCG - Basic Exemption]

Hence in your case it will be

10%(150000-110000)=10%*40000=4000

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Ravikumar.G

Ravikumar.G (Expert)
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27 September 2008 To avail rebate u/s 88E, income from securities have to be treated as business income in total income computation. If you are offering as STCG, then you can't claim STT.