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STCG in ITR2 - Tax calculated at applicable rate

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ramdoss m

124 Points Posted on 13 September 2021

When filling up ITR2 for my son who is having both salary income as well as income from selling shares which I have shown under CG - Short term Capital Gains 111A and also filled the breakup under Information about receipt of Capital Gain - Point 1. - Short term capital gain taxable at 15% flat rate. The Tax working in ITR 2 shows as Gross Income including STCG and rate of income tax is calculated at usual applicable rate. It does not calculate 15% on STCG amount entered. Can somebody help where I am committing mistake?

Replies (4)

Quick Summary

This discussion addresses a common issue when filing ITR2 where short-term capital gains (STCG) are incorrectly calculated at slab rates instead of the flat 15%. The solution involves ensuring the 'Schedule SI' (Statement of Income) is correctly filled and confirmed within the ITR2 form. Once this schedule is properly activated, the software correctly applies the 15% tax rate to STCG, resolving the user's calculation error.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 13 September 2021

1. Check that the schedule SI is confirmed.

2. The short term capital gain is taxed at slab rate, till the basic exemption limit is exhausted. Only after that it is charged at 15% rate.

ramdoss m

124 Points Posted on 13 September 2021

Originally posted by : Dhirajlal Rambhia
	1. Check that the schedule SI is confirmed. 2. The short term capital gain is taxed at slab rate, till the basic exemption limit is exhausted. Only after that it is charged at 15% rate.