I would like to know few things about captial gain taxes. If someone (it’s me 
) has only income from capital gains ie. Short term gain ₹3L and Long term gain ₹2.25L. Apart from this income, no other incomes. So if I’m not wrong upto ₹2.5L no IT under Old Regime & Nil upto ₹7L under New Regime - sec/87. How about my income taxes will be calculated for my situation.? Should I pay 20% for my short term gains.
Please advise @Quicko @Meher_Smaran @ShubhS9
Opt new scheme. No tax payable in your present case.
@CA_Sanil_Joseph_FCA Sir, Thank you for your response sir. At the same time I received some other response as well from other forum. That response is differ from your response ( I pasted the response below). Any thing, are they missed…? or What exactly are they trying to convey to me?
Section 87A Rebate:
1. Eligibility: The rebate under Section 87A is available to resident individuals whose total income does not exceed ₹7,00,000 in a financial year.
2. Important Point: Capital gains, whether short-term or long-term, are not excluded from the calculation of total income for the purposes of Section 87A. However, the rebate under Section 87A cannot be claimed against tax on Long-Term Capital Gains (LTCG) under Section 112A and Short-Term Capital Gains (STCG) under Section 111A.
Application of Section 87A:
If your total income (including other income sources, excluding LTCG and STCG from equity-oriented assets) is less than ₹7,00,000:
a. You are eligible for the rebate under Section 87A.
b. However, this rebate cannot be applied to the tax liability on LTCG above ₹1,00,000 (Old Regime) or ₹1,25,000 (New Regime) and STCG on equity assets, as these specific capital gains are taxed under Sections 111A and 112A respectively.
In simple terms:
a. If your taxable income excluding LTCG and STCG is less than ₹7,00,000, you can apply for the rebate, but not on the LTCG and STCG tax.
b. The rebate does not reduce the tax payable on LTCG and STCG.
Correct Example:
Total Income: ₹5,25,000 (including ₹2,25,000 LTCG and ₹3,00,000 STCG)
New Regime:
Final Tax Liability:
a. LTCG Tax: ₹12,500
b. STCG Tax: ₹60,000
c. Total Tax: ₹72,500
d. Rebate: None on these capital gains.
The rebate does not reduce the tax liability on these specific capital gains under Sections 111A and 112A.
Actually, until last year, STCG u/s 111A was covered under the 87A rebate. Only during the current year, an update to the utility made it impossible to claim this rebate even on STCG.
A proper clarification is awaited on this issue of STCG u/s 111A not being considered for rebate.
You can refer to the below article for more information on this
@SG_13 Yes i aware of it. But @CA_Sanil_Joseph_FCA sir i was mentioned “Opt new scheme. No tax payable in your present case” so i was curious and shared the other forum response.
Hi @cancerpearl,
Under the new regime, you will get the ₹3L basic exemption but rebate u/s 87A will not be available for special rate incomes which includes capital gains from shares and securities. Hence, you’ll have to pay tax on the remaining capital gains at 20% (STCG) and 12.5% on LTCG (you do get a ₹1.25L exemption on LTCG u/s 112A).
If the shares were sold before 23rd July 2024, STCG will be taxed at 15% and LTCG will be taxed at 10%.
Will the 3Lakh basic exemption consist of 1lakh of LTCG and 2lakh of STCG or will it consist of 3lakh of STCG and nil LTCG
Hello @jaiyson ,
The basic exemption limit will be first adjusted against your STCG income and then with LTCG. So the STCG of ₹3L will be fully adjusted against the same under the new regime.
If there is any LTCG, then then one can receive an exemption of upto ₹1.25L and then the remaining LTCG will be taxable.