• Depiction (in Return) of Short Term Capital gains tax (Shares Sale)

In case the total income (including short term cap. gains from sale of shares) is within minimum taxable limit, where to depict it (in Electronic I.Tax Return), as, if shown at normal place (Dec 111A), it will straightway charge 15%, whereas, in such cases, benefit of tax exemption is allowed for short term capital gains tax from share sale if total income falls within minimum exempt amount.
Asked 2 years ago in Capital Gains Tax from Chennai, Tamil Nadu
Dear Sir,

I am extremely sorry to say, I could not understand your query.
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Dear Sir,

The provisions for section 111A as applicable to you are little bit complex and we need details of your total income to arrive at the tax liability.

You are right that in case your total income (including short term cap. gains from sale of shares) is within minimum taxable limit, no tax liability arises. However, it is imperative to note here that Total income means GROSS TOTAL INCOME (i.e. Gross total income before any deductions).

Hence, in your case it may be the situation that your net income is below taxable limit but Gross income is above taxable limit.

You can reach out to us for any further clarifications
Abhishek Dugar
CA, Mumbai
2774 Answers
112 Consultations

5.0 on 5.0

if the total income including short term capital gains is below taxable limit then there is no tax liability
Shyam Sunder Modani
CA, Hyderabad
1408 Answers
95 Consultations

5.0 on 5.0

If the total income including STCG is less than the minimum taxable limit, there will not be tax liability. I suggest that you may use a standard software to file your return, as it will be easier to use. Even in the regular tax return utility of the IT Dept, I did not get any such problem.
B Vijaya Kumar
CA, Hyderabad
833 Answers
46 Consultations

5.0 on 5.0

As per proviso to section 111A in the case of an individual or a Hindu undivided family, being a resident, where the TOTAL INCOME as reduced by such short-term capital gains is below the maximum amount which is not chargeable to income-tax, then, such short-term capital gains shall be reduced by the amount by which the total income as so reduced falls short of the maximum amount which is not chargeable to income-tax and the tax on the balance of such short-term capital gains shall be computed at the rate of 47[fifteen] per cent.
FOR eg.
Total income other than STCG 150000
STCG  80000

Ue can use STCG for availing exemption /Slab rate. No tax @ 15%.

In other words If the total income including STCG is less than the minimum taxable limit, there will not be tax liability
Shiv Kumar Agarwal
CA, Delhi
248 Answers
58 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA