Short-Term Capital Gains Tax on share and MF : How to Save Tax Legally!

Описание: isted Equity Shares & Equity-Oriented Mutual Funds

STCG is taxed at 20% (plus surcharge & cess) under Section 111A if Securities Transaction Tax (STT) is paid.
The basic exemption limit cannot be adjusted against STCG under Section 111A unless the taxpayer is a resident individual or HUF with income below the exemption limit.
Other Assets (Real Estate, Debt Mutual Funds, Gold, etc.)

STCG is taxed at the slab rate applicable to the individual.
The basic exemption limit can be used to reduce taxable STCG.
Set-Off with Basic Tax Exemption Limit
Salaried & Other Individuals:

If total income (including STCG) is below the basic exemption limit (₹2.5 lakh for individuals below 60, ₹3 lakh for senior citizens, ₹5 lakh for super senior citizens), then STCG can be adjusted.
For STCG under Section 111A, only the unutilized basic exemption limit can be set off.
No tax if total income (including STCG) remains within the basic exemption limit.
HUFs:

Can use the basic exemption limit (₹2.5 lakh) to offset STCG.
Non-Residents:

STCG on listed shares/debt funds is taxed at 20% or slab rate as applicable, and exemption limits may not be available in all cases.
Set-Off of Capital Losses
Short-Term Capital Loss (STCL):

Can be set off against both STCG and LTCG in the same financial year.
Cannot be set off against salary, business income, or any other heads of income.
Long-Term Capital Loss (LTCL):

Can only be set off against LTCG.
Cannot be set off against STCG or other heads of income.
2. Carry Forward of Capital Losses
If losses are not fully set off in the same year, they can be carried forward for up to 8 assessment years.
Conditions for Carry Forward:
The taxpayer must file the Income Tax Return (ITR) on time (before the due date under Section 139(1)).
Losses can only be adjusted against the same type of gains in future years:
STCL can be carried forward and set off against STCG or LTCG.
LTCL can only be carried forward and set off against LTCG.
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial, tax, or legal advice. Tax laws are subject to change, and their applicability may vary based on individual circumstances. Viewers are advised to consult a qualified tax professional or financial advisor before making any decisions related to taxation, investments, or capital gains. The creator of this content is not responsible for any actions taken based on the information presented.

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