In case of an residant individual,
What are the tax implications on both the below cases ?
Case 1:
Gross Salary income : Rs 2,75,000
Income from Other Sources :Rs 10,000
Deduction under 80 C : Rs 1,50,000
short term capital gains on sale of shares listed on stock exchange : Rs 1,00,000
Case 2:
Salary income : 0
income from Other sources : 0
Deduction under 80C : 1.5 lacs
short term capital gains on sale of shares listed on stock exchange : Rs 3 lac
Request to please clarify
Hi Harsh,
Tax implications would be as follows:
Case I (A.Y. 2015-16)
Income from Salary 2,75,000/-
Income from Other Sources 10,000/-
STCG u/s 111A 1,00,000/-
TOTAL INCOME = 3,85,000/-
Less: Deduction U/s 80C 1,50,000/- (to be deducted from Total Income excluding STCG)
Income excluding STCG = 2,85,000 - 1,50,000 = 1,35,000
STCG to the extent of difference between basic exemption limit (2,50,000) and 1,35,000 will not be taxed.
Thus, Tax incidence will be ZERO.
How about the case 2 ?
Is 80 C deduction allowed against STCG Section 111A ?
Please clarify.
CAclubindia
