Thanks for response.
Is there an option to the tax payer in this case (STT paid in sell transaction) to use section 111A/112A provision or not? The reason is that for a taxpayer falling in 5% bracket, it would be beneficial not to use 111A provision.
Hey @deepakm007,
In case of listed equity shares and mutual funds, LTCG are taxed at 10% with an exemption up to ₹1 lakh (112A). And, STCG is taxed at flat 15% as per section 111A. Hence, you do not have the option to pay as per the slab rate.
I’ve also updated my previous response and clarified the applicability of sections 111A and 112A.
Hope this helps!
Hi
I have an LTCG of 101731 with regard to equity for this FY. Is the 10% taxation on this is applicable on the entire amount or on 1731. My understanding is that the first 100000 on LTCG is tax free. Can you please clarify this?
Thanks
Hey @Girimon_Vasudevan,
Yes, there is a ₹1 lakh exemption available on LTCG from listed equity shares. The gains in excess of ₹1 lakh are taxable, which in your case are ₹1731.
Hope this helps!
Hi surbhi,
Can’t I show my STCG as business income as I trade frequently. There is an option of slab rate under STCG income head other than 15% and 30% in the quicko app integrated with zerodha. Why is the option of slab rate shown there. Please clarify.
Thanks,
Sajad
Hey @sajad_saleem,
Reporting of trading income is based on the trader’s intent. If you engage in frequent buying and selling of stocks, you can report the same as your business.
Moreover, the tax rates for various capital assets differ based on different asset classes and short-term gains on some of those are taxed as per the slab rate. Here’s a table that will help clarify it further.
Hope this helps!
Gains from stocks and mutual funds are taxed based on the holding period and type of investment. Short-term gains, from holdings less than a year, are taxed at regular income tax rates. Long-term gains, held for over a year, have lower tax rates. For equity investments, long-term gains exceeding ₹1 lakh are taxed at 10%. Debt investment gains are taxed at 20% with indexation benefit for long-term gains and at regular rates for short-term gains. Dividend income is subject to different tax treatment.
A PUBLIC CHARITABLE TRUST REDEEMED MUTUAL FUND UNITS IN MARCH 2024 ACQUIRED IN 1990’S (DATE NOT AVAILABLE) AND 2003 IS LONG TERM CAPITAL TAX WILL BE APPLICABLE The entire PROCEEDS HAS BEEN INVESTED IN FIXED DEPOSIT FOR 1 YEAR.please invorm
Yes, LTCG will be applicable depending upon the type of mutual funds whether equity or debt. Irrespective you invested in fixed deposit, LTCG will be applicable and you have to pay tax on the same.
Thank you.