Sub: Taxability of Short-Term Capital Gain- F.Y. 2009-10
This query is : Resolved
pankaj ajmera
(Querist)
15 April 2010
Sub: Taxability of Short-Term Capital Gain- F.Y. 2009-10
My total income is Rs.2.60 lakhs which includes short term capital gain on shares of Rs.50000/- . Tax slab up to Rs.3 lakhs is 10% while short term capital gain tax rate is 15% .
Can we have the option to consider this income of Rs.50000/- (STCG ) as normal income & pay only 10% tax ?
Please advise
Pankaj Ajmera
My total income is Rs.2.60 lakhs which includes short term capital gain on shares of Rs.50000/- . Tax slab up to Rs.3 lakhs is 10% while short term capital gain tax rate is 15% .
Can we have the option to consider this income of Rs.50000/- (STCG ) as normal income & pay only 10% tax ?
Please advise
Pankaj Ajmera
Aditya Maheshwari
(Expert)
15 April 2010
YOu will have to pay tax on STC gain u/s 111A @ 15% only
15 April 2010
AGREE WITH ADITYA JI. SINCE YOUR TAXABLE INCOME INCLUDES STCG, FIRST OF ALL YOU WILL HAVE TO PAY TAX @ 15% U/S 111A. THEN @ 10% ON BALANCE.
taxindiaconnect
(Expert)
26 April 2010
I do not agree with the views expressed above as under section 111A , in case of assessee being an Individual, HUF, the basic exemption limits etc will be available to such assessee. When basic exemption limit of 160 K is exhausted, the next level is 10%, however the tax payable will be @ 15% but the tax will be payable on Capital Gain- 160000 in this case thus bringing down the effective tax rate.
Aditya Maheshwari
(Expert)
26 April 2010
Dear Rajesh Dua
As per income tax first tax is paid on normal income and then tax is paid on income liable for special rates of tax. So first other income will be exhausted from the basic exemption and then capital gains will be liable to tax.
As per income tax first tax is paid on normal income and then tax is paid on income liable for special rates of tax. So first other income will be exhausted from the basic exemption and then capital gains will be liable to tax.
26 April 2010
AGREE WITH ADITYA JI.
RAJESH JI YOU ARE YOURESLF SAYING TAX WILL BE PAYABLE @ 15% THEN WHATS THE POINT OF DISAGREEMENT. SIR PLEASE EXPLAIN PROPERLY SO THAT WE CAN LEARN FROM OUR MISTAKE, IF ANY.
RAJESH JI YOU ARE YOURESLF SAYING TAX WILL BE PAYABLE @ 15% THEN WHATS THE POINT OF DISAGREEMENT. SIR PLEASE EXPLAIN PROPERLY SO THAT WE CAN LEARN FROM OUR MISTAKE, IF ANY.
taxindiaconnect
(Expert)
04 May 2010
Infect I did not notice that the entire income of 260 K is not from CG. Now I read the query again and realise though I right, but with not correct facts. Thanks for correcting me, I do agree with Sanjay and Aditya on the facts of query.
04 May 2010
SIR YOU ARE WELCOME.
Aditya Maheshwari
(Expert)
04 May 2010
You are welcome. We did thought some mistake might have crept in so just wanted a clarification.
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