Proviso to section 111A

 its all upto we people that whether we are taking benefit of that sec. or not. so, if u are showing that u paid stt than u have to pay tax @ 15% but if u r not taking benefit of STT paid. than 10% tax rate will be applied bcoz u r in 10% tax bracket....

No Dhiraj.

i have daubt of ur answer. U have to pay STT on all the securities sold through recognised stock exchange.

And there is proviso to section 111A which applicable for only listed securities sold through recognised stock exchage. so if u have shifted any income to the basic exemption limit of an assessee than on remaining income on which u have to pay tax @ rate of 10% even though u r covered u/s-111A.

See the bare act langauge as i have posted above with an example.

Where it is clearly written that on balancing income of 111A, assesse is chargable to tax at the rate of 10%. And there is no question of non-disclosure of STT as it is covered u/s-111A, on it STT is must paid. ok.........

u had paid STT

its okay

but govt. says

if u had paid securities transaction tax than u have to pay tax on STCG @ 15%, as this section is a beneficial section

this 15% tax rate is for rebate to you

in case u have to pay tax  @ 20% or 30%, than this section will work good for u...

but if u r in 10% bracket, than y r u taking benefit of STT paid,

as this is not providing benefit to u...(increase ur tax by 2000 according to above example)

n its all upto we people whether we are taking benefit of this rebate or not..

n think...

u r not earning money and still u are paying tax... (Rs. 2000/-)

yyyy??????

N IF U STILL WANT TO PAY MORE TAX TO GOVT.

than u may to me extra 2000, i will handle ur case if it scrutnised....

no my frnd...

u can get the benifit of STT paid also. Bt wat the Proviso said the tax on balancing income tax shall be lavied at the rate of 10%.

I think it is better u first see the wording of the proviso wat is said. Otherwise on this income tax shall be lavied at the rate of 15%.

kkkk

take another view....

your taxable income is 2,00,000 naa

1st u exempt 150000 of stcg and 10000 of business from first 160000(individual exemption limit)

and now taxed the rest 40000 business income @ 10%.

hey Dhiraj,

As per the relevent provision of Income tax act, in case of shifting of income firt normal income is shifted to basic exemption of limit. i.e all other income other than LTCG, STCG U/s-111A, Wining from lotaries, cross world, puzzles etc. Than on balancing exemption limit , if any, than these are shifted. Except wining from lotaries, etc.. which is chargable at the flat rate of 30% without benifit of basic exemption. 

so i think ur second view is not correct.. May i right..?

dear, its ur wish now...

if u want to pay more tax.. u can....

no body will stop u...

ur refund will come in future...

or u can claim ur refund in future...

Same thing discussed here also

A weird Section 111A

Please do not undertake any planning on this section as per the provision as stated in the end as the same could be amended any  time. Also refer the link given.

Dear Sirs,

Kindly Clarify whether Short Term Capital Gains (STCG) of DEBT MUTUAL FUND comes under Section 111A or not. Where should I mention this in ITR-2 whether in (3ai) or (3aii)? Please clarify.

STCG of DEBT MUTUAL FUND is clubbed with Total Income and Tax is calculated as per the Tax Slabs.

Is the above is correct? Should I mention this in (3ai) or (3aii) of ITR-2. Please reply.

Jyotika