Short term capital gain

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2014 If a person has only short term capital gain of Rs. 50,000 by selling shares and no any other income. What will be his tax liability. Earlier we were of the opinion that he will get the basic exemption limit of Rs. 2,00,000 and his taxability would be zero. But new ITR 2 shows his liability as 15% + Education Cess. Kindly clarify

Nitin Bhuta

Nitin Bhuta (Expert)
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27 May 2014 certainly zero because if income from all the sources of head is less than basic threshold limit then no tax is payable by default.

Rupesh Jain

Rupesh Jain (Expert)
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27 May 2014 his tax liability will be zero due to his other income is zero and STCG is Rs. 50000/-

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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27 May 2014 it could be because of two reasons:

1. the person is resident but you have mentioned the same in Capital Gains "A""2" under section 115AD(i)(b)(ii) instead of 111A

or

2. you have shown the same in Capital Gains "A""4"

you are required, assuming it is covered therein, under Capital Gains "A""2" under section 115A

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2014 Thanks to all of you. Actually the problem was started when I started writing in new ITR 2 format given by Income Tax Department. It calculated tax immediately for Rs 7,500 + Cess at only at Rs. 50,000 STCG . Actually as I filled the form other columns and then recalculated it, It counted zero tax.

Thanks to all of you.