My Gross salary is 7,00,000 and after deductions of standard deduction, section 80C and Section 80ccd(1B), my salary becomes 4.5 lakh. I also invest in Equity delivery stocks.
Net taxable income= 4,50,000
STCG = 50,000
Do i need to pay tax 15% stcg tax on 50,000 which will be 7,500 ?
Secondly, what will be the total tax which i need to pay ?
Note: consider rebate u/s 86A
Thirdly, can i consider total taxable income 4,50,000 + 50,000 = 5,00,000 that means no tax upto 5L taxable income ?
You will need to pay capital gain tax @15% for this AY as per the rule and you cant show capital gain as salary income or vice versa. Rebate will be there until unless taxable income is less than 5lac.
Why i will pay tax as you can see my taxable income is 4,50,000 + 50,000= 5,00,000 . After considering Rebate u/s 87A, no tax.
Okay but max rebate value is 12500 and you are liable to have tax value of 17500 including capital gain tax as per you will have tax liablity of 5000 with rebate.
This is a misconception of 87a.
You are not getting 2.5L tax free, its is 5% of 2.5L that is inr 12500.
15% of 50K is 7500 for STCG.
4.5L - 2.5L = 2L so here you have tax of inr. 10000
so your total tax is 17.5K and exempt is 12.5K
Plus cess etc
Hi chirag1,
Let’s take another example, Gross salary is 8,00,000 and after deductions of standard deduction, section 80C and Section 80ccd(1B), my taxable salary becomes 5.5 lakh. I also invest in Equity delivery stocks.
Net taxable income= 5,50,000
STCG = 50,000
How much tax do i have to pay now, please explain with calculation …
Now that 12.5K rebate is gone.
For 5.5L,
first 2.5L @ 0% = 0
next 2.5L @ 5% = 12.5K
balance 50K @ 20% = 10K
Plus
STCG 50K @ 15% = 7.5K
Total: 30K
Even in 1st case, if stcg is 60K, then total income crosses 5L, it becomes 5.1L:
in that case also 12.5K rebate has to be foregone.