if i have a salary income of Rs.80,000/- and short term capital gain is Rs.70,000/- (STT paid)
should i pay tax on Rs.70,000/- @ 10%
Should I pay tax on Rs.40,000/- @ 10% (i.e. 70,000+80,000-110000 exemption limit)
Should i reduce STT from my capital gain income
What benefit can i gain from STT paid
Thanks
Take the exemption first & the rest amount will amount to Short Term Capital Gain....I.e. 40000
S.Term Capital Gains Tax at special rates @ 10% u/s 111A is payable on Rs 40000/- . STT in case of Capital Asset may be treated as a component of cost or cost of sale.
Section 10(38) of the Income tax Act ,exempts following income: (38) any income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund where— (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
So considering the above you cant take exemption for STCG, but can avail Relief U\s 88E for the STT paid
Mr Sharun,
The relief u/s 88E will not be available for STT bcoz that shall be avaliable only in case of business & profession .....
It's a part of Cost..
wht is the current rate of STT?
whn amendment came and wht was amendment?
pls tel me
thnx in advance
In my view you should pay tax on
(i.e. 70,000+80,000= 1,50,000
Less Investment made during the year
= Balance amount This will be taxable).
Thanks
Praveen
CAclubindia
