Income tax

Hey, if i earn STCG from selling of shares how it will effect my return. as i have read that 15% is charged on STCG so if my total income is less than the limit and from this STCG i have to pay tax or not. like an example my total income is 2 lakh but from selling the shares i earn on short term 6000 rs then i have to pay tax of 15% on 6000.
Replies (2)

No, Taxability on STCG on listed share is charged to Tax under section 111A @ 15%. The calculation will be as per below concept.

first of all you have to considered other income exempt stcg u/s 111A in to your basis exemption limit. after it any amount is remaining to be adjusted so you can adjust you stcg u/s 111A.

As per your Example: your total income is Rs 200000 and STCG u/s 111A is 6000.

Hence first take 200000 to your consideration in Basic exemption limit of Rs 250000. Now balance is remaining that is to be adjusted is 50000 (250000-200000) and then adjust Rs 6000 STCG in RS 50000 hence your overall income is less the basic exemption limit hence no tax will be payable by you.
 

hello Ayush,

STCG can be adjusted against basic exemption limit, but however deduction under chapter VIA shall not be allowed againt STCG @ 15%.

But however u can claim deduction under VIA before adjusting STCG from basic exemption limit.

here - Total income(excluding STCG)-Basic Exemption limit-Deduction under VIA and then STCG @ 15% shall be added.

Hope u Understood clearly.

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