STCG ON SHARES

Mr X is getting salary of Rs 220000 pa and
STCG on sales of shares on Listed Stock exchange STT PAID rs 10000
will he need to pay @ 15% tax on 10000 or tax liability would be nil?
Replies (3)
Quick Summary
This discussion clarifies the tax implications of Short-Term Capital Gains (STCG) on shares when combined with salary income. It explains that if your total taxable income, after considering salary, STCG, and eligible deductions, falls below the basic exemption limit, you likely won't owe any tax on your STCG. The examples illustrate scenarios where STCG tax is payable and when it is not, depending on the final net income.

If X is resident, no tax liability in this case as the taxable income is below basic exemption limit.

No there will be no tax liability
If Mr X is having a gross income of 4.5 lakh rupees from salary and stcg from sale of shares on listed stock exchange STT paid is rs.1.3 lakhs. i.e total income of rs. 5.8 lakh rupees. Now Mr X is having deduction under chapter VI of rs. 1.5 lakhs. His net income now comes out to be 4.3 lakhs. Do Mr. X has to pay tax @ 15% on 1.3 lakh rupees.
Note: His total income after deduction is coming out to be less than 5 lakh.

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