What is short-term capital gains (STCG) under Section 111A of the Income Tax Act.
It addresses the following major points: – Section 111A of the STCG applies to the sale of equity shares, equity-oriented mutual fund units, and business trust units on a recognized stock exchange that is subject to securities transaction tax (STT).- Section 111A taxes the STCG at a reduced rate of 15% (plus appropriate surcharge and cess).
However, this rate has been increased to 20% from July 23, 2024.- Residents can use Section 111A to adjust their STCG against the baseline exemption level, while non-residents cannot do so.
- What are the key conditions for availing the concessional rate under Section 111A?
- How can residents adjust the STCG under Section 111A against the basic exemption limit?
- What is the difference between Section 111A and Section 112A?
- Can the benefit of indexation be availed while computing STCG?
- What is the impact of the 2024 updates on the taxation of STCG under Section 111A?
