Tax on short term capital gains

is the STCG of 111A @ 15%?

If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%.

Specify the capital asset sold....

If STCG is due to sale of shares & you have paid STT then as per Proviso to Sec. 111A STCG will be taxed @ 10% only.

Originally posted by : Nitu Agarwal
	If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%.

agreed                     

Originally posted by : Nitu Agarwal
	If STCG is from u/s 111A (i.e. from selling shares), it will be taxed @ 15%, otherwise 10%.

agreed

it is stcg u/s 111A. but if it gets taxed at 15% then the assessee is paying more tax ultimately..

15% since more than slab income

The question is unclear as to whether the short term capital asset which is the subject matter of discussion is a share on which stt has been paid at the time of sale or any other short term capital asset. Hence there can be two answers:

1. If the short term capital asset is a share on which stt has been paid:

  Then as per the provisions of Sec 111A, the short term capital gain on transfer of shares on which stt has been paid will be taxable at a flat rate of 15%. It is also provided that in the case of a resident individual or a huf,  where the gross total income before including therein the said short term capital gain does not exceed the maximum amount not chargeable to tax,  then the benefit of the balance basic exemption limit can be availed against such short term capital gain.

Hence in this case, 

Maximum amount not chargeable to tax : Rs.1,60,000.

Gross Total Income before including short term capital gains : Rs 1,50,000

Balance unadjusted basic exemption limit : Rs.10,000  [1,60,000-1,50,000]

Therefore balance short term capital gains after availing the benefit : Rs. 25,600  [35,600-10,000]

Tax on the same : 15% of Rs. 25,600 =Rs. 3,840.

2. If the short term capital asset is any other asset:

Then the short term capital gain is taxable at the normal slab rates.

Tax in that case would be : Rs. 25,600 @ 10% =Rs. 2,560

Plz note that i have ignored education cess for simplicity

relating to Short Term capital Gain there is some condition to be fulfiled for 10% and 15% so please confirm whether the conditions are fulfiled or not.

@ 15% if it is from Equity oriented funds or equity shares

STCG on which STT Paid 15% Otherwise Includes in Income & calculete Tax as per Tax Slab

STCG on Sale of Shares 15%, (Security Transaction tax Paid) Taxable at a special rate and otherwise 10%

In the given case you will get a relief of 160,000-150,000=10,000.

And the remaining capital gain of 25,600 would be taxed at 10%(i.e slab rate if it is normal stcg) or at 15% (i,e. if it is stcg which has suffered stt)