Assessee is resident male individual.
His total income of Rs. 185600 consists of Rs. 150000 business income and
Rs. 35,600 of the STCG.
in this case i have following queries:
1. can we tax Balance STCG of Rs. 25,600 @ 10% or do we need to calculate tax at 15%only?
is the STCG of 111A @ 15%?
If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%.
Specify the capital asset sold....
If STCG is due to sale of shares & you have paid STT then as per Proviso to Sec. 111A STCG will be taxed @ 10% only.
| Originally posted by : Nitu Agarwal | ||
 |
If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%. |
 |
agreed
| Originally posted by : Nitu Agarwal | ||
|
|
If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%. |
|
agreed
it is stcg u/s 111A. but if it gets taxed at 15% then the assessee is paying more tax ultimately..
15% since more than slab income
The question is unclear as to whether the short term capital asset which is the subject matter of discussion is a share on which stt has been paid at the time of sale or any other short term capital asset. Hence there can be two answers:
1. If the short term capital asset is a share on which stt has been paid:
Then as per the provisions of Sec 111A, the short term capital gain on transfer of shares on which stt has been paid will be taxable at a flat rate of 15%. It is also provided that in the case of a resident individual or a huf, where the gross total income before including therein the said short term capital gain does not exceed the maximum amount not chargeable to tax, then the benefit of the balance basic exemption limit can be availed against such short term capital gain.
Hence in this case,
Maximum amount not chargeable to tax : Rs.1,60,000.
Gross Total Income before including short term capital gains : Rs 1,50,000
Balance unadjusted basic exemption limit : Rs.10,000 [1,60,000-1,50,000]
Therefore balance short term capital gains after availing the benefit : Rs. 25,600 [35,600-10,000]
Tax on the same : 15% of Rs. 25,600 =Rs. 3,840.
2. If the short term capital asset is any other asset:
Then the short term capital gain is taxable at the normal slab rates.
Tax in that case would be : Rs. 25,600 @ 10% =Rs. 2,560
Plz note that i have ignored education cess for simplicity
relating to Short Term capital Gain there is some condition to be fulfiled for 10% and 15% so please confirm whether the conditions are fulfiled or not.
@ 15% if it is from Equity oriented funds or equity shares
STCG on which STT Paid 15% Otherwise Includes in Income & calculete Tax as per Tax Slab
STCG on Sale of Shares 15%, (Security Transaction tax Paid) Taxable at a special rate and otherwise 10%
In the given case you will get a relief of 160,000-150,000=10,000.
And the remaining capital gain of 25,600 would be taxed at 10%(i.e slab rate if it is normal stcg) or at 15% (i,e. if it is stcg which has suffered stt)
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