Taxability only because of inclusion of STCG in total income

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This query is : Resolved

hinduja (Querist)

27 June 2011 Where total income becomes taxable only because of inclusion of stcg,
would S 111A come into play and
would stcg be reduced by difference between Max limit (190000 in case of women assesses<65 yrs)and Total income without stcg?

And is 80 C deduction from LIC PREM ADN PPF available on Total income without stcg?

Thanks in adv

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 June 2011 First Case - Normal STCG: not of 111A STCG
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In this case STCG will be a normal income like business, salary, HP income and slab rate is applicable. Deduction of Chapter VIA will be allowed

Second Case - 15% Special Rate STCG: or 111A STCG of Rs 255000/-
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Threshold limit benefit of Rs 1.90lacs will be available. If business income is of Rs 35000/- then 111ASTCG upto Rs 155000/- can be utilised for completing the limit. On Balance 100000/ 111ASTCG
15% Rate will be applied.

Chapter VIA deductions like LIC etc will not be available.

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