TAXATION OF SHORT TERM CAPITAL GAIN
mohit arora
(Querist) 05 June 2008
This query is : Resolved
SIR MY INCOME FOR THE PY 2007-2008 IS RS
90570. SHORT TERM CAPITAL GAIN IS RS 123875. PL TELL ME WHETHER STCG WILL BE ADJUSTED AGAINST MY INCOME UPTO WHICH IT FALLS SHORT OF THE BASIC EXEMPTION LIMIT.
BASIC EXEMPTION LIMIT 110000
LESS INCOME 90570
SHORT FALL 19430
NOW STCG 123875
LESS SHORT FALL 19430
BALANCE TAXABLE 104445
PL TELL ME AM I RIGHT ?
Manish Singh
(Expert) 09 June 2008
yes you are right, but y are paying tax for Rs. 104445 since you can invest this amount somewhere else accordingly so that you need not pay any tax.
RAJENDER SINGH MANN
(Expert) 14 June 2008
U are right in adjusting the short fall in the basic exemption limit. U can adjust the amount from the short term capital gain if the STCG is covered under section 111A of the Income-tax Act, 1961. Otherwise any other short term capital gain is to be included in the total income of the individual and taxed accordingly.
RAJENDER SINGH MANN
(Expert) 14 June 2008
U have not clarified which type of STCG you are having. If the STCG is from sale of shares through recognised stock exchange and on which STT has been paid, the the shortfall in the basic exemption limit can be adjusted from the short term capital gain. ( Adjustable STCG is the gain covered under section 111-A of the Income-tax Act, 1961. If the STCG is not of the nature covered under section 111-A, than the total income is to be calculated by adding the STCG in the other income and the total income so arrived shall be taxable at per the slab rates.
