Suppose In the case of women assessee Income under sec 111A is Rs.5000 and other income is Rs.215010 and Deduction under Sec 80 C is Rs.25000, then tax will be payable @ 15% or 10%?
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SEc 111A
Replies (4)
For A.Y. 2009-10, STCG u/s 111A will be taxable @ 15%. Tax on Rs. 10,010 (Rs. 215010 - 25000 - 180000) will be taxable @ 10%.
STCG - 5000
Other income 215010
GTI 220010
Less Ch VIA -25000
Total Income 195010
Tax Rs.10,010 at 10%, Rs.5000 @ 15%
the stcg can be set off only against unexhausted basic exemption limit. In your case, the Ch VIA deduction is claimed against income from other sources, since you cant claim ch VIA deduction against capital gains.
Out of 195010, 5000 is STCG, and balance is normal income
agree with the Calculations of Sinister ......
Dear All,
What Sinister and Varun has said is correct but see to this interesting situation.
I have got chance/occation to share with you the anomalities in this section.
Tax on short-term capital gains in certain cases.
111A. (1) Where the total income of an assessee includes any income chargeable under the head “Capital gains”, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and—
(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax under that Chapter,
the tax payable by the assessee on the total income shall be the aggregate of—
(i) the amount of income-tax calculated on such short-term capital gains at the rate of 97[fifteen] per cent; and
(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:
Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of ten* per cent.
Now say an individual resident male has Income other than income chargeble at the rate specified u/s. 111A of Rs. 1,00,000/- and STCG chargeble at the rate of this section of Rs. 8,00,000/- I shall be require to pay tax at the rate of 10% on amount of Rs. 7,40,000/- (9,00,000 - 1,60,000/-).
Ya its true, How?
in the case of an individual or a Hindu undivided family, being a resident,
I m satisfying this
where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax,
I m satisfying this:- my total income is Rs. 9,00,000/- and reduce by STCG of Rs. 8,00,000 it comes at Rs. 1,00,000/-
then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax
It says that from 1,60,000-1,00,000/- = Rs. 60,000/- shall be reduced from STCG of Rs. 8,00,000/- i.e. Rs. 7,40,000/- (balance)
and the tax on the balance of such short-term capital gains shall be computed at the rate of ten* per cent.
Rs. 7,40,000 @ 10% = Rs. 74000/-
Hey let me know, what do you think.
Also if you refer Income tax site you can find the note in * sign as it is to be 15%.
Thanks
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