Under section 111A, tax is computed on STCG at a flat rate of 15% on transfer of a equity share of a company or a unit of an equity oriented fund or a unit of a business trust on which securities transaction tax has been charged.
However, in case of resident individual or resident HUF if other income is less than 'basic exemption limit', then such STCG shall be reduced by such short fall and tax on balance of STCG shall be computed @15%.
Accordingly, tax on such STCG will be-
15% x [Such STCG - (Basic exemption limit-other income)]
No Deduction Under Chapter-
VI A
Further, where gross total income of an assessee includes any such short term capital gains, the deduction under chapter VIA shall be allowed from the gross total income as reduced by such gains.
Other short-term capital gains are taxed at the normal rates applicable to the assessee. Deduction under chapter VIA is available in such cases. |