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Income tax

16 June 2016

Hey, if i earn STCG from selling of shares how it will effect my return. as i have read that 15% is charged on STCG so if my total income is less than the limit and from this STCG i have to pay tax or not. like an example my total income is 2 lakh but from selling the shares i earn on short term 6000 rs then i have to pay tax of 15% on 6000.

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CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 16 June 2016

No, Taxability on STCG on listed share is charged to Tax under section 111A @ 15%. The calculation will be as per below concept.

first of all you have to considered other income exempt stcg u/s 111A in to your basis exemption limit. after it any amount is remaining to be adjusted so you can adjust you stcg u/s 111A.

As per your Example: your total income is Rs 200000 and STCG u/s 111A is 6000.

Hence first take 200000 to your consideration in Basic exemption limit of Rs 250000. Now balance is remaining that is to be adjusted is 50000 (250000-200000) and then adjust Rs 6000 STCG in RS 50000 hence your overall income is less the basic exemption limit hence no tax will be payable by you.

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