varun ji.. aaap basic exemption se pehle stcg ko khatam nahi karsakte........ in desi bhasha..

pehle aap apni income (other than stcg ) ko basic exemption se khatam karo.. aur agar iske baad basic exemption bach jaye to fir stcg ko utne bache hue basic exemption se khatam kardena !!!! simple.

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saurabh (student) (22 Points)
Replied 17 January 2011

I think the above presentation is not good..

it should be...

Other than 111A income 1,90,000

Less- VI-A 1,00,000

90,000

111-A 30,000

Total 1,20,000

Tax Computation

111A NIL

Balance NIL

Total NIL

Jyotika (CA studying) (68 Points)
Replied 17 January 2011

Dear Sirs,

Kindly Clarify whether Short Term Capital Gains (STCG) of DEBT MUTUAL FUND comes under Section 111A or not. Where should I mention this in ITR-2 whether in (3ai) or (3aii)? Please clarify.

STCG of DEBT MUTUAL FUND is clubbed with Total Income and Tax is calculated as per the Tax Slabs.

Is the above is correct? Should I mention this in (3ai) or (3aii) of ITR-2. Please reply.

Jyotika

john (LEARNER) (554 Points)
Replied 17 January 2011

Originally posted by JUZER

I would like to share with you the anomalities in subjected section.

Tax on short-term capital gains in certain cases.

111A. (1) Where the total income of an assessee includes any income chargeable under the head “Capital gains”, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and—

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and

(b) such transaction is chargeable to securities transaction tax under that Chapter,

the tax payable by the assessee on the total income shall be the aggregate of—

(i) the amount of income-tax calculated on such short-term capital gains at the rate of ⁹⁷[fifteen] per cent; and

(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were the total income of the assessee:

Provided that in the case of an individual or a Hindu undivided family, being a resident, where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of ten* per cent.

Now say an individual resident male has Income other than income chargeble at the rate specified u/s. 111A of Rs. 1,00,000/- and STCG chargeble at the rate of this section of Rs. 8,00,000/- I shall be require to pay tax at the rate of 10% on amount of Rs. 7,40,000/- (9,00,000 - 1,60,000/-).

Ya its true, How?

in the case of an individual or a Hindu undivided family, being a resident,

I m satisfying this

where the total income as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax,

I m satisfying this:- my total income is Rs. 9,00,000/- and reduce by STCG of Rs. 8,00,000 it comes at Rs. 1,00,000/-

then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax

It says that from 1,60,000-1,00,000/- = Rs. 60,000/- shall be reduced from STCG of Rs. 8,00,000/- i.e. Rs. 7,40,000/- (balance)

and the tax on the balance of such short-term capital gains shall be computed at the rate of ten* per cent.

Rs. 7,40,000 @ 10% = Rs. 74000/-

Hey let me know, what do you think.

Also if you refer Income tax site you can find the note in * sign as it is to be 15%.

Thanks