For individuals with total income after deductions below the basic exemption limit, STCG can be adjusted against the shortfall. This means that if your total income is less than the exempt limit, the STCG can offset this shortfall and reduce the taxable amount. In such a case, only the remaining STCG amount, after this adjustment, will be taxed at the new rate of 20% for residents. This provision ensures that smaller investors are not disproportionately taxed.