if my income is less than the ceiling limit and if I have short term capital gains from trading in shares, and the total of my normal income and short term capital gain do not exceed rs 250000 then, do I have to pay tax? or can I use the ceiling limit for short term capital gain also?
1 Replies
Deepak Gupta
(CA Student)
(15922 Points)
Replied 16 March 2015
A resident individual can adjust the basic exemption limit against STCG covered u/s 111A. Firstly, income other than STCG is to be adjusted against the exemption limit and then the remaining limit (if any) can be adjusted against STCG.
.
15% X [STCG – (Exempted ceiling – Total income excluding STCG)]
.
Hence, if the gain gets adjusted against the balance exemption limit, tax liability will be NIL.
.
[The above position is applicable in case such transactions are for the purposes of investment and income/loss arising therefrom is to be computed under the head CG.]
Recent Topics
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
Related Threads
CAclubindia
