HUF Income tax if entire income is STCG?

This discussion clarifies the income tax implications for a Hindu Undivided Family (HUF) where the entire income of 3 lakhs is from Short-Term Capital Gains (STCG). The query centres on whether the balance income after the basic exemption limit is taxed at the standard slab rate or the 15% STCG rate. The consensus is that STCG from debt mutual funds held for less than three years is taxed at the applicable slab rate, not the 15% rate reserved for equity-related STCG.