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Please advise

(Guest)

Dear All,

If an Individual is having an Income Only from Sale/ Purchase of shares, that too only SHTCG, will he be eligible to take exemption under section 80C and also which slab will be applicable to him.Please confirm

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10 Replies

Harpreet (* * * * * *) (1670 Points)
Replied 21 July 2010

U r entitled to take deduction of 80c, 80d, 80e, 80g, 80u etc after merging all income from all sources.

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Akhil Gupta (Manager F&A) (856 Points)
Replied 21 July 2010

Under section 80C, deduction is available from Gross Total Income only to an individual or a HUF.

As per Sec 111A No deduction is available under section 80C to 80U from the short term capital gain arises on transfer of equity shares or units in equity-oriented funds.

Proviso to Sec 111A gives a relief if the follwing conditions are satisfied:

The taxpayer is a resident individual or a resident HUF.
(Taxable income - STCG) < amount of exemption limit {i.e., 160000/190000(women)/240000(senior citizen)}

The folllowing shall be deducted from the STCG

Net taxable Income - Short Term Capital Gain.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 July 2010

Before providing any deduction under chapter VIA gross total income shall be more than minimum exemption limit.

M. N. JHA (CA) (8316 Points)
Replied 21 July 2010

Originally posted by : Akhil Gupta
	Under section 80C, deduction is available from Gross Total Income only to an individual or a HUF. As per Sec 111A No deduction is available under section 80C to 80U from the short term capital gain arises on transfer of equity shares or units in equity-oriented funds. Proviso to Sec 111A gives a relief if the follwing conditions are satisfied: The taxpayer is a resident individual or a resident HUF. (Taxable income - STCG) < amount of exemption limit {i.e., 160000/190000(women)/240000(senior citizen)} The folllowing shall be deducted from the STCG Net taxable Income - Short Term Capital Gain.

Yes, If an individual having income from only STCG u/s 111A then dedection under chapter VIA not alowed.

Income Tax Rates/Slabs for A.Y. (2011-12)

Slab (Rs.)	Tax (Rs.)
less than 1,60,000	Nil
1,60,000 to 5,00,000	(TI – 1,60,000) * 10%
5,00,000 to 8,00,000	34,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	94,000 + (TI – 8,00,000) * 30%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)
less than 1,90,000	Nil
1,90,000 to 5,00,000	(TI – 1,90,000) * 10%
5,00,000 to 8,00,000	31,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	91,000 + (TI – 8,00,000) * 30%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)
less than 2,40,000	Nil
2,40,000 to 5,00,000	(TI – 2,40,000) * 10%
5,00,000 to 8,00,000	26,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	86,000 + (TI – 8,00,000) * 30%

Ed.Cess @ 2% and SHEC @ 1% is applicable.

DT Fundas - Tarun rustagi ( Author) (1150 Points)
Replied 21 July 2010

dear friend

section 80 deductions are not allowed for capital gain income.in case of individual u can only claim exemption limit.

regards

tarun rustagi

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Amit Gupta (Loosening Myself) (1508 Points)
Replied 22 July 2010

Originally posted by : Akhil Gupta
	Under section 80C, deduction is available from Gross Total Income only to an individual or a HUF. As per Sec 111A No deduction is available under section 80C to 80U from the short term capital gain arises on transfer of equity shares or units in equity-oriented funds. Proviso to Sec 111A gives a relief if the follwing conditions are satisfied: The taxpayer is a resident individual or a resident HUF. (Taxable income - STCG) < amount of exemption limit {i.e., 160000/190000(women)/240000(senior citizen)} The folllowing shall be deducted from the STCG Net taxable Income - Short Term Capital Gain.

ABSOLUTELY

Rohit Khaitan (Learning from Life) (127 Points)
Replied 22 July 2010

dear folks

I completely agree with mr. Akhil Gupta and would sya that u cannot get any exemption so watever other than the minimum basic exemption limit in case where you are having only Capital Gain income..