What is Stcg U S 111A?

Illustration of STCG under section 111A Ans-The sale of equity shares is a short term capital gain as its holding is less than 12 months. Also being equity shares transferred through the recognised stock exchange (STT paid ), this case is covered under section 111A.

Is there any exemption for Stcg?

Short Term Capital Gain Exemption Individuals who wish to claim deductions/exemptions on short term capital gains can do so under Sections 80C to 80U of the Income Tax, provided short term capital gains do not fall under section 111A.

How do I avoid Stcg tax?

Tips to Reduce the Burden of STCG on Shares

1. Individuals can adjust their short-term capital loss on shares against other short-term or long-term capital gains.
2. Individuals may carry forward their losses as a tax adjustment.

What is section 54 of Income tax Act?

Section 54- Available for long-term capital gains on the sale of a residential house. Also, even if one condition not fulfilled, seller cannot avail exemption. Further, new house is sold with in 3 years from date of purchase then exemption claimed earlier shall be taxable in year of sale of new house property.

Who is eligible for rebate u/s 87A?

Eligibility to claim rebate u/s 87A: You must be a resident individual taxpayer of India. Your total annual taxable income after applicable deductions (such as under Section 80) should not exceed Rs 5 lakhs in a financial year. You can avail a tax rebate capped at Rs 12,500.

How is Stcg calculated?

STCG Tax Calculation Example – 100 per share and proceeded to sell them off in January 2018, after 8 months, at the rate of Rs. 120 per share (at Rs. The table below illustrates the particulars of Mr Singh’s tax liabilities on the short term capital gain from equity shares.

How are STCG’s taxed under Section 111A?

If the conditions of section 111A as given above are satisfied, then the STCG is termed as STCG covered under section 111A. Such gain is charged to tax at15% (plus surcharge and cess as applicable).

How does Section 111A, 112A and 112 apply?

Section 111A, 112A and 112 of Income Tax Act apply for tax rates on transfer / sale of shares, debentures, bonds, units of mutual funds, units of business trust, immovable property and other capital assets. On transfer of capital assets gain is computed as per long term or short term.

How is short term capital gain taxed under Section 111A?

STCG on sale of equity shares, units of business trust or units of the mutual fund through a recognised stock exchange located in IFSC (international financial service centre ) where consideration is paid in foreign currency, even if STT is not liable. Short-term capital gain under section 111A is taxed at a flat tax rate of 15%.

Are there any tax deductions for STCG on mutual funds?

Section 80C deductions relating to investments in PPF, LIC, PF etc.) is not available from STCG on Equity Shares & Equity Oriented Mutual Funds. Means if your only income is short term capital gain from shares, you will not be eligible for ny deduction under Section 80C fortax savings investments.