HUF Income tax if entire income is STCG?

In an HUF account, entire income is from STCG and it is 3 lakhs. So, 2.5 lakhs will be exempt under basic tax limit.

Will the balance be taxed at 5% tax rate (as per tax bracket) of 15% (because it is short-term capital gain)?

Thanks! 

Replies (3)
Quick Summary
This discussion clarifies the income tax implications for a Hindu Undivided Family (HUF) where the entire income of 3 lakhs is from Short-Term Capital Gains (STCG). The query centres on whether the balance income after the basic exemption limit is taxed at the standard slab rate or the 15% STCG rate. The consensus is that STCG from debt mutual funds held for less than three years is taxed at the applicable slab rate, not the 15% rate reserved for equity-related STCG.

If the STCG is from equity related units/shares, tax rate 15%;   otherwise as per slab rate.

It is from debt mutual fund - held for less than 3 years and hence STCG. Thank you.

 

You are welcome.               

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