STCG and LTCG Taxation

Taxation
1

Hello, I’m a little confused in taxation related to short term and long term capital gain tax from equity and debt n other securities.

Equity related STCG is taxed at 15% even if your tax slab is different %. Here, say if my total income from business is 4L and STCG profit is 1L. Then total taxable income will be 5L?
In which 1.5L will be taxed @ 5% and the STCG profit will be taxed @ 15%?

After all this, net payable tax will be 7500+15000 = 22500?
In this, can Section 87A rebate be taken? If yes, will it reduce the tax by 12500, making payable tax = 10000?

  1. Out of these 4, whose income can be considered for rebate under section 87a? STCG n LTCG fr equity related and debt/security related?

  2. Another scenario, if total business income is 4.5L and STCG profit from equity is 2L. Here total taxable income will reach 6.5L?
    How will tax be computed in this scenario?

Please help!
@Quicko @neha1101 @Prayag

2

Hi @FalconZex

  1. If your total income from the business is 4L and STCG profit is 1L then total taxable income will be 5L where 1.5L will be taxed @ 5% and the STCG profit will be taxed @ 15%.
    Total tax will be 7500+15000 = 22500 reduced by 12500 since you are eligible for a rebate u/s 87A and net tax payable would be 10000.

  2. You can claim the benefit of rebate u/s 87A if total income is up to INR 500000

  3. If total business income is 4.5L and STCG profit from equity is 2L, net tax payable would be INR 40000

You can your our Income Tax Calculator for the calculation of taxes.

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