Tax implications on stcg on sell of listed shares

Hi Harsh,

Tax implications would be as follows:

Case I (A.Y. 2015-16)

Income from Salary 2,75,000/-

Income from Other Sources 10,000/-

STCG u/s 111A 1,00,000/-

TOTAL INCOME = 3,85,000/-

Less: Deduction U/s 80C 1,50,000/- (to be deducted from Total Income excluding STCG)

Income excluding STCG = 2,85,000 - 1,50,000 = 1,35,000

STCG to the extent of difference between basic exemption limit (2,50,000) and 1,35,000 will not be taxed.

Thus, Tax incidence will be ZERO.

How about the case 2 ?

Is 80 C deduction allowed against STCG Section 111A ?

Please clarify.