Flat 15% tax over any STCG left after adjusting it from Basic exemption limit.
1. According to sec 111A, STCG on sale of shares on which STT is paid will be taxed @ 15%.
2. The unexhausted basic exemption limit if any will be exhausted on the above gains and the balance amount will be subject to tax @ 15%.
3. In the above case, the balance unexhausted amount will be reduced from STCG and the balance STCG (if any) will be taxed @ 15%.
Please correct me if the above solution has an alternative view.
CAclubindia
