My uncle retired 2 months ago.
He exercised most of ESOP & majority of MF portfolio last month. He made 48L as LT Cap gain. 2L as salary income this year, 4L as ST Cap Gain, 4L as Dividend. 2L as rental income. No other income.
Is he liable to pay 10% surcharge as his total income exceeds 50L? My take was that as LT Cap Gain & Dividends are tax-free, they are not included in the calculation of Total Income and therefore he need not pay surcharge. Pls clarify.
The reason for the question is that he needs to plan ahead. For now he is looking to park 60% of his money in FD and invest the remaining 40% in stocks / MF directly via Zerodha. He is planning to take it forward based on the tax treatment (whether he is liable to pay surcharge or not)