STCG TAX: Is it flat 15% or as per tax slab? Can I choose?
STCG from the sale of equity shares or equity oriented mutual funds on which STT is charged on sale transaction are taxed at 15.45% (including education cess) instead of your normal slab rates. So if you are an individual who comes in the 10% tax bracket, then you would have to pay more on these gains, but if you fall in the 20% or 30% tax bracket, then this special rate of 15% is beneficial for you.
Also, you cannot avail any deductions under Chapter VI-A (like deduction under Section 80C, 80D, etc.) from these gains. Further, the relaxation of reducing your capital gains amount in case your total taxable income is less than the minimum exemption limit of Rs 2,50,000 is also available.
Small correction: There is no more 10% tax slab, its 5% now