InvestorQ : What are the key things to remember when clubbing the STCG with total income from all sources in the IT returns?
Neelam Naik made post

What are the key things to remember when clubbing the STCG with total income from all sources in the IT returns?

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Priyanka N answered.
1 year ago
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There are a few basic things to remember here, while calculating the STCG tax and clubbing with the income of the individual. Here are the highlights:

In case the assessee has salary income and STCG (not covered under Section 111A) then the exemptions under Sections 80C to 80U can be adjusted against the total income including salary and the STCG.

In case the assessee has salary income and STCG (covered under Section 111A) then the exemptions under Sections 80C to 80U can only be adjusted against the Salary income and not against the STCG, since it is already a concessional rate of tax.

In case the assessee has no other income and only STCG (not covered under Section 111A) then the exemptions under Sections 80C to 80U can be adjusted against the total income consisting of STCG only.

In case the assessee has no other income and only STCG (covered under Section 111A) then the exemptions under Sections 80C to 80U cannot be adjusted against the total income consisting of STCG, since the STCG is already getting the benefit of concessional tax

The default rate of tax on STCG is the peak rate of tax applicable to the individual. However, the only exception is Equities as defined under Section 111A which will attract a concessional STCG tax of only 15%.

The default holding period for STCG is up to 36 months. There are 3 exceptions. In case of equities covered under Section 111A, it is 12 months and it is just 24 months in case of unlisted shares and in case of residential property.
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