Will 15% STCG be applicable in case of no other income?

Taxation
1

Will STCG be applicable in case of no other income?

e.g. College student has 50k STCG profit in a year but he does not have any other source of income. In this case, will he have to still pay a flat 15% tax on STCG?

Same question for LTCG. If say LTCG is 2 lakhs, 1 lakh is excepted but will he have to pay 10% on the remaining 1 lakh when he has no other source of income?

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2

@Quicko

3

No,
where the other incomes do not exhaust your basic exemption limit of 250000. Then the unexhausted limit can be deducted from the capital gain and calculate tax for remaining portion.

So in the examples mentioned the tax liability is nil.

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5

Hey Jenny,
If you are resident and your income is less than the basic exemption of Rs.2.5 lakhs, there will be no tax liability for capital gains.

In case of Non- Residents, they will have to pay both STCG and LTCG.

It is always a good practice to file Income tax return and report the transactions, even when there is no tax liability. Since there are chances of getting a notice from the Income Tax Department.

Here is a read on the data partnership between SEBI and CBDT.