Ashok Kelkar (B.Com) (143 Points)
29 May 2015I HAVE ONLY INCOME FROM STCG IN SHARES. WHETHER I AM ELIGIBLE FOR THRESHHOLD LIMIT? i.e. WHETHER I CAN REDUCE RS, 250000/ THEAN 500000/- etc. OR I HAVE TO PAY TAX ON FULL AMT. @ 15%? WHETHER I CAN GET EXEMPTIONS SUCH AS INTEREST ON HOUSING LOAN AND CHAPTER VIA?
PLEASE ANSWER
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 May 2015
Since STT is paid on this, STCG is taxable @ 15%. However, relief is available as per proviso to sec 111A (explained below).
No deductions can be claimed u/s 80C to 80U in this case but interest on borrowed capital u/s 24b is deductible.
Relief in some cases (proviso to sec 111A)
Conditions
If the above conditions are satisfied, the following shall be deducted from STCG u/s 111A
Exemption limit – (Net income or taxable income – STCG u/s 111A)
After deducting the above amount, the balancing amount of STCG u/s 111A is taxable @ 15% + EC + SHEC
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