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STCG ON SHARES

Himanshu Agarwal (Proprietor) (186 Points)

17 June 2021

Mr X is getting salary of Rs 220000 pa and
STCG on sales of shares on Listed Stock exchange STT PAID rs 10000
will he need to pay @ 15% tax on 10000 or tax liability would be nil?

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3 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 17 June 2021

If X is resident, no tax liability in this case as the taxable income is below basic exemption limit.

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 18 June 2021

No there will be no tax liability

Ankit Kaushik (3 Points)
Replied 19 June 2021

If Mr X is having a gross income of 4.5 lakh rupees from salary and stcg from sale of shares on listed stock exchange STT paid is rs.1.3 lakhs. i.e total income of rs. 5.8 lakh rupees. Now Mr X is having deduction under chapter VI of rs. 1.5 lakhs. His net income now comes out to be 4.3 lakhs. Do Mr. X has to pay tax @ 15% on 1.3 lakh rupees.
Note: His total income after deduction is coming out to be less than 5 lakh.