STCG In case of STT PAID

wel..ur STCG is u/s 111A, so u hv to pay tax on it @ 15%.

Even if u hd any other income den also u cudnt club STCG wid them as only STCG other than u/s111A can be added wid other incomes..n for STT u cn claim deduction under business income now from AY2009-10.

If he is just having STCG of Rs. 1.20 lacs and no other income then his income is lower than the exemption limit of Rs. 1.50 lacs determined for A.Y. 2009-10 hence he has no tax liability in A.Y. 2009-10. Further, you can go through the proviso to Sec. 111A which grants relief in such cases.

Sir

if u want to do tax planning to minimise ur tax liability den go for  LTCG on securities which is fully exempt from tax.

if u cn wait for 1 year n den sell ur securities ur income wud be tax exempt.

But dear namita, STCG u/s 111A is taxable @ 15%. U cn refer d buk for dis purpose.

Hi Siddhi,

Please refer proviso to Sec. 111A which clearly specifies for relisef in such cases hence no tax liability for A.Y. 2009-10.

CA Namita Ganatra

Friends;

Both Sidhi and Namita is correct;

For Non - Residents, tax shall be charged @ 15.45 irrespective of Basic Exemption limit (maximum amount not chargeble to tax) and subject to DTAA

For Resident as per provisio to section 111A(1), it shall form part of total Income and tax shall not be charges upto amount of basic exemption limit (maximum amount not chargeble to tax)

Dear Erric, nw u have to decide taxability of STCG based on Residential status of your customer. In case he is tax resident in India, he can get benefit of basic exemption as rightly said by Namita.

Regards

Juzer

Hi Juzer,

In the entire discussion my assumption was that the assessee is resident definitely or else Eric would have specified.

CA Namita Ganatra

ya if stcg is the only income and it is less than the applicable exemption limit, it is not taxable at all.

that is for resident individuals and resident HUFs

frns, my doubt is

deductions under sec; 80C to 80U are not available against LTCG.

are allowed against STCG(including STCG u/s;111A)??

Deduction under section 80C to 80U is is not available in respect of long term capital gains and those short term capital gains which are taxable u/s. 111A.

Regards

CA Namita Ganatra

First of all Thanks 2 all of them 4 paying attention...........

Ind/l is resident of India..

So Conclusion : He dont have any Tax liability and he enjoy relief of Basic exempn limit.......

He can show it in "income from capital gain" head and Is it compulsory 2 file return when its less than basic exempn limt i.e NIL return

Agree

 Basically for all resident we have claim basic exemption for all source of income except "casual income".  So even for STGC we can take benefit. But it comes after like this. First apply for income other than casual income, LTGC and STGC. Then apply for LTGC and if left apply for STGC.

With regards....

Sathya.......

Thaqs Every One

If the tax payer is ind/huf, ordinary resident/not ordinary resident

STCG/LTCG is less than the exemption limit, no tax provision will apply.