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Income tax on STCG

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Puneet

Enterprenur

9 Points Posted on 13 January 2022

I am an individual with gross total income of 680000 which include short term capital gain from selling shares of Rs 28000. I am told i have to pay STCG 15% , does it mean i count 15% on 28000 and subtract this amount from total income i.e. 680000-28000=652000 and calculate income tax on 652000 seprately.

Replies (4)

Quick Summary

This discussion clarifies the income tax treatment of Short Term Capital Gains (STCG) from selling shares. STCG is generally taxed at a flat rate of 15%, plus applicable surcharge and cess. It's important to note that this 15% rate applies specifically to STCG covered under Section 111A; other STCGs are taxed at your normal income tax rate. Deductions under sections 80C to 80U are also considered in the overall tax calculation.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 13 January 2022

Correct.

The same will be calculated by income tax utility for ITR 2 or ITR 3, whichever applicable to you.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 13 January 2022

Tax rates of STCG STCG covered under section 111A is charged to tax @ 15% (plus surcharge and cess as applicable). Normal STCG, i.e., STCG other than covered under section 111A is charged to tax at normal rate of tax which is determined on the basis of the total taxable income of the taxpayer.