stcg-111a

tax liability will be Rs. 36,000. The rate of STCG will be 15%

From AY 2009-10 STCG to be taxed @ 15%

Tax liability computation

Basic exemption 1,60,000

(-) other income   1,00,000

(-) STCG                    60,000

Balance STCG of Rs.2.40 lacs x 15% = 36,000/=

I agree to u but,

according to Dr Vinod. singhania, if stcg is adjusted in basic exemption limit then stcg is taxed @ 10% flat rate, waht ever may be your sctg income

is there any provision in the bear act?

Rate of STCG was 10% upto Asst. Yr. 2008-09.

Check out the Asst. Yr.

i hav checked it out in a.y 10-11

I agree to u but,

according to Dr Vinod. singhania, if stcg is adjusted in basic exemption limit then stcg is taxed @ 10% flat rate, waht ever may be your sctg income

is there any provision in the bear act?

As per Section 111A of Income Tax Act, 1961 if Gross toal income except STCG is below the maximum amount not chargeable to tax then the rate of tax should be 10% on the balance amount. This is given in the explanation of the section 111A.

This is applicable for individual and HUF only.

Dear Dilip & piyush,

I can understand ur concern. There appears to be loophole in law. The honourable FM while increasing the rate from 10 to 15% for STCG, they have missed out the corresponding amendment to explanation to section 111A. I also request experts/authors to suitably explain the lapse/loophole in their textbooks to enable student to understand the same. I hope the concern are put to rest.

Warm regards

Kanti Salecha

https://www.caclubindia.com/forum/re-anomalities-in-section-111a-49201.aspDear All,

I would like to share with you the anomalities in subjected section.

Tax on short-term capital gains in certain cases.

 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

Hello Mr. Jain,

You are saying that it is a loophole in the section 111A and Govt have missed out this explanation. According to me this is not so and the reason is this explanation is applicable to individuals and HUF only. By providing 10% tax here govt want to encourage the small investors to invest in the market.

I want your opinion whether im correct or not??

I have also checked out it is changed from 10% to 15%.

Originally posted by : Shudhanshu Agrawal
	Hello Mr. Jain,   You are saying that it is a loophole in the section 111A and Govt have missed out this explanation. According to me this is not so and the reason is this explanation is applicable to individuals and HUF only. By providing 10% tax here govt want to encourage the small investors to invest in the market.   I want your opinion whether im correct or not??

 Dear Shudhanshu,

I stand by my view. If the govt wanted to encourage small investors being individuals & HUF then they could have provided for STCG tax rate of 10% for them but instead of that in order to increase the tax revenue and bridge in deficit, they proposed a tax rate of 15%. However they missed out in amending the explanation to sec 111A. But the damage is minimal as very few assessee will fall in this category.

Also if u see the act, after providing * they have commented, "word fifteen need be substituted for ten". That indicate the publisher's personal view or comment but the law/act provides for 10% only.

I hope this will clarify ur doubt.

Warm regards

Kanti Salecha

thank you guyz for helpin me out........