Short Term Capital Gains Confusion

Taxation
1

Hi @Quicko can you please clear this doubt.

Suppose I earn 3.5 lakh rupees from my business and 3 lakhs from buying and selling shares within an year which is Short Term Capital Gain. I will opt for new tax regime. How much tax I have to pay?

2

Hey @himudaji,

Your business profits will be taxed at a slab rate and the STCG will be taxable at a flat rate of 15%.

Under the new regime, you get a tax rebate if the income taxable at the normal slab rate is below ₹7L. Hence, there’ll be no tax liability on the business income. The STCG of ₹3L will be taxed at 15% and the tax liability will come to ₹45,000.

3

So will I not get the benefit of tax slab in short term capital gain?

4

Is there any way to save short term capital gains in new tax regime? @Quicko

5

He should not pay any tax if the profit is only 3 lacs, right? As I understand if the income is more than 3 lacs then we need to pay tax for that (amount above 3 lacs)
So, if the STCG is 4 lacs, then one need to pay tax of 15K. Am I right?
Thanks,

6

Hey @himudaji,

No, short term capital gains will be taxed at flat 15%. You will get the basic exemption though.

7

Hey @satya,

But there’s business income also on which the basic exemption is already utilised. Hence, the entire ₹3L STCG will become taxable.

8

Thank you. I got your point. So, This STCG will not be counted in total exempt limit of 7 lac.

1 Like
9

Hi dear i am employee and mine annual income is 2lakh and i got sme ipo allotment and i got profit of 3.5 lakh so please tell me i have to pay any taxes?STCG or i will have to file itr to get rebate please clear my confusion

10

Hi dear i am employee and mine annual income is 2lakh and i got sme ipo allotment and i got profit of 3.5 lakh so please tell me i have to pay any taxes?STCG or i will have to file itr to get rebate please clear my confusion :wave::wave::wave:

11

Hi how can I reduce stcg burden of close to 1.2 l by participating in reliance bonus share issues

12

Hi @BGVALA,

You do get the basic exemption of ₹3L under the new regime. So first, your 2L income will be exempted and the remaining ₹1L will be exempted from the STCG.

Hence, ₹2.5L STCG will become taxable.

The rebate is not available for STCG. Hence, you’ll have to pay tax at 20% (if gains were realised on or after 23rd July 2024) or 15% (if gains were realised before 23rd July 2024).

13

What if my total income is 3Lakh rupees and it is from short term gains only. Then I have to pay zero tax?

I don’t have any other source of income. I only earn from short term gains by buying and selling stocks.

15

@Quicko can you please reply

16

I think 0 tax in this situation but I am not expert. Let me wait for the answer from @Quicko .

17

So team @Quicko if you are not interested in replying my queries then let me know I will never ask you any questions. I can see your replying others questions but not mine.

18

I also mentioned you above so you might reply and correct me if I was wrong in the above answer of mine.

19

Hi @himudaji @Team_Rankings ,

If you opt for the new regime, you’ll get a basic exemption of ₹3L and hence, there’ll be no tax liability on your STCG.