Tax on STCG (shares) with Security Transaction Tax (STT) is 15% and Tax on LTCG with STT is NIL.Tax on LTCG with out STT is 10% with indexation and 20% with out indexation. What is the Tax rate on STCG with out STT?
Dear Mr. Pandian,
If STT is not paid, then STCG shall be taxable as per the applicable tax slab rate.
The STCG is added as an additional income to your taxable income. The tax shall be calculated depending upon your tax slab (as per your income).
According to Income Tax rules, with effect from Assessment Year 2017-18, benefit of concessional tax rate of 15% (in case of Short Term Capital Gains (STCG)) shall be available even where Securities Transaction Tax (STT) is not paid. But the following conditions need to be met - transaction should be undertaken on a recognised stock exchange located in any International Financial Service Centre, and ‐ consideration is paid or payable in foreign currency. If these conditions are not met, your STCG will be taxed as per your tax slab. Also, note that Long Term Capital Gains (LTCG) in case STT is not paid, is only 10% with indexation. 20% without indexation is not available.