Stems from Finance (Union Budget) 2024, where the tax rate under Section 111A for STCG was raised from 15% to 20%

Short-Term Capital Gains (STCG) tax rate for listed equity shares in India for Assessment Year (AY) 2025-26 (Financial Year 2024-25):


STCG Rate for Listed Shares – AY 2025-26

Transaction Date             Applicable STCG Rate (Section 111A)
On or before 22 July 2024
            15%  + applicable surcharge & cess
On or after 23 July 2024                          20% + surcharge & cess 

Why the change?

This revision stems from Finance (Union Budget) 2024, where the tax rate under Section 111A for STCG was raised from 15% to 20%, applicable to listed equity shares, equity-oriented mutual funds, and business trusts, provided conditions like STT payment are met.

Key Takeaway:

  • STCG for listed equity sold before 23 July 2024: 15%

  • STCG for listed equity sold on/after 23 July 2024: 20%


Comments

Post a Comment

Popular posts from this blog

Capital Gains Tax on Sale

  1. Capital Gains Tax on Sale of House Property vs. Land Criteria House Property (Building & Land) Vacant Land (Plot of Land) Holding Period for LTCG More than 24 months (Long-Term) More than 24 months (Long-Term) Holding Period for STCG ≤ 24 months (Short-Term) ≤ 24 months (Short-Term) STCG Tax Rate As per Slab Rate As per Slab Rate LTCG Tax Rate 20% with Indexation 20% with Indexation Indexation Benefit ✅ Available ✅ Available Exemptions Available Section 54 (Reinvestment in house) & Section 54EC (Bonds) Only Section 54F (Reinvestment in house) & Section 54EC (Bonds)   🔹 Key Difference in Exemptions House Property: Eligible for Section 54 , allowing reinvestment in another re...
Read more

What Is Incriminating Material in Income Tax Law?

  What Is Incriminating Material in Income Tax Law? Incriminating material refers to any document, record, statement, digital evidence, or seized item during a search or survey that directly indicates undisclosed income, transactions, or assets of the taxpayer, and can justify an addition in assessment or reassessment. 📚 Judicially Recognized Definition “Incriminating material” is any evidence unearthed during a search which: Relates to a specific assessment year , and Reveals income not disclosed in the original return or books of account 📂 Examples of Incriminating Material Type Examples 💵 Cash / Jewellery Unexplained cash or jewellery without proper source 📝 Documents Unaccounted invoices, promissory notes, loan ledgers 🖥️ Digital evidence Files/emails showing black money, hawala, or bogus transactions 📒 Books of account Parallel books of accounts 📄 Agreements Benami transactions, property undervaluation 💼 Diaries / slips Unrecorded business transac...
Read more

EEE Savings Scheme typically refers to tax-saving investment options that offer exemptions at three stages

Image
  In India, the EEE Savings Scheme typically refers to tax-saving investment options that offer exemptions at three stages: 1. Exemption at Investment Stage (Section 80C): Contributions to eligible schemes are deductible from taxable income. 2. Exemption from Interest or Dividend (Section 10): Interest or dividend earned on these investments is exempt from tax. 3. Exemption at Maturity or Withdrawal (Section 10): Maturity proceeds or withdrawals from these schemes are tax-free. Some popular EEE Savings Schemes in India: 1. Public Provident Fund (PPF): A long-term savings scheme with a lock-in period of 15 years. 2. National Savings Certificate (NSC): A fixed-income investment with a lock-in period of 5 or 10 years. 3. Life Insurance Corporation (LIC) Policies: Certain LIC policies, such as the LIC Jeevan Lakshya Plan, offer tax benefits. 4. Equity-Linked Savings Scheme (ELSS): A mutual fund scheme with a lock-in period of 3 years. 5. Unit-Linked Insurance Plan (ULIP): A life insura...
Read more