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Section 111A

Tax queries 815 views 1 replies

Jyotika

CA studying

68 Points Joined 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

Replies (1)

SUNIL GARG

CHARTERED ACCOUNTANT

175 Points Joined June 2009

Jyotika Ji,

Sec. 111A covers only:

i) Equity Shares of a company; and

ii) Units of a Equity Oriented Mutual Fund.

So, the STCG from DEBT MF will not be covered under section 111A. This income will be clubbed in normal income and tax will be charged at normal slab rates.

In ITR 2, it will come in column 3 a (ii).