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Tax implications on stcg on sell of listed shares

Tax queries 511 views 5 replies

In case of an residant individual, 

What are the tax implications on both the below cases ? 

Case 1:

Gross Salary income : Rs 2,75,000
Income from Other Sources :Rs 10,000
Deduction under 80 C : Rs 1,50,000
short term capital gains on sale of shares listed on stock exchange : Rs 1,00,000

Case 2:

Salary income : 0
income from Other sources : 0
Deduction under 80C : 1.5 lacs
short term capital gains on sale of shares listed on stock exchange : Rs 3 lac

 

Request to please clarify

 

 

Replies (5)

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.

Case 2 will be taxable for Rs 5000+ecess

How about the case 2 ?

Is 80 C deduction allowed against STCG Section 111A ?

Please clarify.

 

 

No, deductions under Chapter VI A are not allowable w.r.t. Section 111A !
Case 2 tax will be 7500


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