Do I need to pay STCG and LTCG tax if my returns are less than 2.5 lakhs?

General
1

Suppose I am not working anywhere and don’t have any salary income.
I am investing in the stock market and have an STCG of 50k and LTCG of 1.5 lakhs
Total share market investment gain = 2 lakhs

The income tax slab after 2.5 lakhs. My investment gain is 2 lakhs and it is less than 2.5 lakhs.
Do I still need to pay the STCG 15% tax on 50k and LTCG tax of 10% on 50k? (1.5-1 lakhs)

Or I don’t need to pay any tax as the amount is less than 2.5 lakhs?

2

If you do not have any other income other than what is mentioned below and you are a Resident Indian, you need not pay tax.

Two things you get

  1. LTCG you get an exemption of 1 Lack.
  2. you can adjust the gains against the basic exemption limit of 2.5 lack. In your case as the total is 2 lacks you need not pay tax.

The above is for Resident Indian only and not for NRI.

Disclaimer: This is my understanding, please do your own research and take your call.

1 Like
3

@Quicko Can you please confirm if our understanding is correct?

4

No as the gross total income is less than 250000/-.

5

No u don’t need to pay tax. But If u don’t work & are investing in market, then might probably from IT’D if it gets scrutinized ahead then they can ask u from where you investing money in market if u r not working.

6

Hi @Jack_R, yes you’ve got it right.
In case you are a resident you’ll get an exemption upto 2.5 lakh rupees.
And if you are a non resident, LTCG will be exempt upto 1 lakh rupees and remaining long term and short term capital gains will be taxable at 10% and 15% respectively.