Why Sur Charge Can Not Be Imposed Despite Having Income Exceeding Rs 10 Lacs?
i) My taxable income from salary = 780000
ii) Short term capital gain (from shares) = 115000
iii)Long term capital gain (from shares) = 120000
ii) Short term capital gain (from shares) = 115000
iii)Long term capital gain (from shares) = 120000
My total income by adding above( i ,ii,iii ) crosses RS 10 lakhs . Am I liable for 10% surcharge.I have no investment for deduction u/s 80C.
William Alex Dias, Mumbai
William Alex Dias, Mumbai
The surcharge is imposed if the total income of an individual exceeds Rs 10 lakhs. It is seen from your question that you have long term capital gains of Rs 1,20,000. If these shares are listed shares , sold through stock exchange and securities transaction tax was paid on it, the long term gains on such shares are exempt by virtue of section 10(38) of the I T Act.
Significance of exemption u/s 10(38)
The section 10 of the I T Act provides exemption provisions. The opening line is significant. It starts as under
Significance of exemption u/s 10(38)
The section 10 of the I T Act provides exemption provisions. The opening line is significant. It starts as under
10. Incomes not included in total income.Clause 38 of section 10 provides from exemption of long term capital gains if the shares are listed, sold through stock exchange and STT is paid on the sale.That means that in your case total income can not include RS 1,20,000. Therefore the total income being less than 10 lakh , no surcharge is payable by you.
In computing the total income of a previous year of any person , any income falling within any of the following clauses shall not be included….
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