Hi friend,

As the STCG & other income is less than basic exemption limit i,e 160000/- so STCG is taxable @ 10% &  not at 15%

So u can pay tax on STCG @ 10% only

regards

harish

i am not agree with harish there isno need to pays to tax  niether @ 15% nor @ 10%

section 10 (35) exempts income from mutual fund . while 10 (23d) exempts income of mutual fund

hey i have daubt the answer given by Manoj.

As total income is less than the basic exemption of Rs.160000, assessee is not laible to any tax. bt in case his basic exemption is exceeds rs.160000 than as per proviso to section 111A of the income tax act such excess amount is lable to tax at the rate of 10% not at the rate of 15% even though it is covered U/s-111A.

In case of Resident Individual and HUF slab benefits is also available in respect of short term capital gain taxable u/s 111A.  Here the total income is less than Rs. 160000 so tax shall be nil.

IF UR TOTAL INCOME IS UNDER BASIC LIMIT THEN U WILL NOT LIABLE TO PAY TAX.......IN UR CASE UR INCOME IS UNDER BASIC LIMIT..THEN U WILL BE NOT TAXABLE.....

HELLO PARIN,

IF THE SHORT TERM CAPITAL GAIN COVERED BY SEC 111A, IT IS CHARGEABLE @ 15% AND NOT AT THE RATE OF 10%. SECTION 111A SPECIFICALLY MENTIONED THIS FACT.

OF COURSE, IF THE TOTAL INCOME OTHER THAN SHORT TERM CAPITAL GAIN  IS BELOW THE EXEMPTION LIMIT, THE CASE COVERED BY THE PROVISO TO SEC 111A OF THE IT ACT AND SHORTFALL I.E. EXEMPTION LIMIT MINUS TOTAL INCOME OTHER THAN STCG SHOULD BE DEDUCTED AND REMAINING TAXABLE @ 15%.

REGARDS,

MANOJ

Hi Manoj

I think there is your mistake in interpretation of Proviso to section-111A. Proviso to Section-111A is said that on balancing income of section-111A after reducing basic exempption is chargeble to tax at the rate of 10% not 15%. Proviso to section 111A i.e. exception to section-111A which establish chargebility at the rate of 10%, where incoe of section 111A is chargable at the rate of 15%. Here below i have puted proviso to section 111A of bare act with example. I think from that u can get better understanding. I there is any my mistake hereinto than tell me. But i may be its right.

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.

For exampe. An individual having having total income of Rs.2,00,000 which includes Business income of Rs.50,000 and STCG u/s-111A being Rs.1,50,000. Hance while computing his total tax laibility, for basic exemption of Rs.1,60,000 first business income of Rs.50,000 is set-off and for balancing exemption of Rs.1,10,000, STCG u/s-111A is shifted.
And for balancing STCG-U/s-111A of amounting Rs.40,000 (1,50,000-1,10,000) Tax is lavied at the rate of 10% and not at the rate of 15%.

agreed with manoj