Capital gain 111A simple question . plz help

Yes, in case of STCG it will be taxed @ 15% and in case of LTCG it will be taxed @ 20% on Rs. 30000/-.

Further if Salary Income is 200000/ and LTCG is 30000/- in that case total tax payable will be 1000+6000=7000 +EC+HS & S EC.

"But i wanna ask one thing tht if his income frm salary is 190000 n he has nt any amt which can b deducted u/s 80C, 80CC,80CCD. n his capital gain is 30000 then how it wil b taxable ...

would the LTCG will b taxable at  simply 20 % rate n remaining will b deducted."

No deduction under chapter VI can be claimed by the assessee agianst the special tax rated incomes for eg Sec - 111A, Sec - 112, Sec - 115AC, 115AD etc (related to Chapter XII and Chapter XIIA incomes applicable to non-resident).

So even if only capital gain income is there, to the extent of basic exemption limit, no tax liability will arise and in the above case though the benefit of 80C, 80CCD etc cannot be claimed against capital gain , LTCG of Rs. 30000 will come in tax free bracket.

agree with above explanations

No  lic deduction will be grant in this case because deduction is allowed only from normal income

80c exemption is not available for STCG which is 30000

bt available for salary which is 190000

So  190000-100000(80c,agt. Salary)=90000

& STCG  30000

Total 120000<190000

So NIL

agreed with above answers...

tax liability will be NIL

naina plz tell me the income from capital gain which is 30000 are covered in sec 111A or not 

if income covered under sec 111A  than 15% rate apply  so taxable income is 

30000*15%               4500

and is normal income is nill bcog i assume basic examption limit is 190000

and if income covered under sec 112  that is long term capital gain which is taxable at 20% 

but if  certain condition are satisfied than LTGC are exampt from tax under section 10(38)

than tell me such income are covered under sec 112 

Insertion of new section 111A.

26. After section 111 of the Income-tax Act, the following sec­tion shall be inserted, with effect from the 1st day of April, 2005, namely:—

‘111A. Tax on short-term capital gains in certain cases.—(1) Where the total income of an assessee includes any income charge­able under the head “Capital gains”, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and—

        (a)  the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

        (b)  such transaction is chargeable to securities transac­tion tax under that Chapter,

the tax payable by the assessee on the total income shall be the aggregate of—

      (i)  the amount of income-tax calculated on such short-term capital gains at the rate of ten per cent; and

     (ii)  the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:

              Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not charge­able to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of ten per cent.

(2) Where the gross total income of an assessee includes any short-term capital gains referred to in sub-section (1), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.

(3) Where the total income of an assessee includes any short-term capital gains referred to in sub-section (1), the rebate under section 88 shall be allowed from the income-tax on the total income as reduced by such capital gains.

Explanation.—For the purposes of this section, the expression “equity oriented fund” shall have the meaning assigned to it in the Explanation to clause (38) of section 10.’.

total income is mentioned.... this has to be seen after llowing the deductions under chapter VI to the other income (excluding stcg) 

Shobhit bhaiya if an individual (Resident) has salary income of Rs.1,61,000 and STCG u/s 111A of Rs.30,000 then whether STCG can be absorbed first against basic exemption limit of Rs.1,60,000 and tax can be charged on salary income of Rs.31,000 {1,61,000-(1,60,000-30,000)} @ 10.3% being STCG fully absorbed by Rs.1,60,000.?

Originally posted by : Varun Sharma
	Shobhit bhaiya if an individual (Resident) has salary income of Rs.1,61,000 and STCG u/s 111A of Rs.30,000 then whether STCG can be absorbed first against basic exemption limit of Rs.1,60,000 and tax can be charged on salary income of Rs.31,000 {1,61,000-(1,60,000-30,000)} @ 10.3% being STCG fully absorbed by Rs.1,60,000.?

No, 161000-160000= 1000x10%

30000x 15% (stcg spl rate) = 4500 

total IT 5500 + 3% EC 

I agree With Sonam Answer.

 Salary Income     190,000

  STCG(111A)           30,000

         Gross Total Income is  190,000 excluding LYCG and STCG hence Tax is Livied on Short Term Capital Gain Us 111A   @ 15%    4500  and no deduction claim on Us 80C because she have exempted income and no deduction is claimed on Capital Gain  there for Tax Liability is 4500

No sec-80 deduction claimed agaInst STCG u/s 111A, claimed 80C deduction against with salary income after deduction claimed with salary income total salary income is 90,000/- + 30000 (STCG u/s 111A) total net income is 120000/- which is less than the basic exemption i.e.190000/- there is no tax libility.

I agree with US Sharma Answer