https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094658
@CA.MAYANK.KOTHARI @CA.Aniruddha.Rathi please guide..
Hey Guys is short term gain is taxable?
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I am salaried . Suppose my income is 4L per year... and I want to do profit booking in equity. which i bought 8 months back.. and now total profit is 1,15,000.
So as i know short term gain is taxable at 15%. ... but my total income is less than 7L as per new regime.
so my question is.. 1,15,000 will be taxable or not ?
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https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094972
Tax Rebate under the New Tax Regime: A maximum rebate of Rs. 25,000 is applicable to resident individuals opting for the new tax regime under Section 115 BAC(1A) with a total income of up to Rs. 7 lakhs.
Here, seems like basic concepts are not clear.
People think that basic exemption limit is only Rupees 7 lakhs under NEW TAX REGIME, but that is not true.
Basic exemption limit under new tax regime is rupees 3 lacs only.
And you get rebate under section 87A up to Rs 25,000 if your income is below Rs 7 lacs.
Now, to answer your question,
There will be NO tax liability because of rebate 87A in your case. It is not just because your income is below Rs 7 lacs but it is because your tax liability before rebate under section 87A comes below Rs 25000.
Consider another example below then the concepts will be crystal clear for you.
Suppose your other income is rupees 4 lakhs and short term capital gain on shares is rupees 175000.
Now, calculation under new tax regime will be as below:
Tax at normal rate on rupees 4 lakhs : Rs. 5000
Tax at special rate of 15% on short term capital gain on shares of Rs. 175000 : Rs. 26250
Total Tax Liability: Rs. 31250
Rebate under section 87A: Rs. 25000 only
Balance tax liability: 6250
4% Cess: 250
Total Tax Liability including cess: Rs. 6500
Conclusion:
It is wrong to say that there is zero tax liability just because your income is below Rs 7 lacs.
Few incomes like short term capital gain on shares are having special tax rate.
So always calculate tax liability first without rebate and then see how much maximum rebate you get on it.
I hope I am very much clear now to make you understand the concepts.
𝓣𝓱𝓪𝓷𝓴 𝔂𝓸𝓾... 
🏻
ᴡᴀʀᴍ ʀᴇɢᴀʀᴅꜱ,
ᑕᗩ. ᗩᑎIᖇᑌᗪᗪᕼᗩ SᑌᖇESᕼ ᖇᗩTᕼI
Hadapsar, Pune, Maharashtra
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https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094714
All under 7l, then not taxable. If it exceeds 7l, you will have to pay 15% on excess. Stcg is the last thing that has to be adjusted to the 7l limit.
https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094769
You dont have to pay tax.
https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094782
STCG is taxable whether your salary isonly 4 lakh or 2 lakh. your stock broker will report all trades .
only if your gain is in intra day trades , then you can file ITR-3 and declare stock trading as a business. Then your gains or loss will be counted in your overall income. (below 7 lakhs)
https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094814
I think you need to pay stg tax
https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094856
STCG is payable
https://www.desidime.com/discussions/hey-guys-is-short-term-gain-is-taxable?page=1#post_10094947
in your case, your total income is 4L+1.15L = 5.15L and if you are not showing any HRA or 80C i.e. no deductions, then
For old regime, it will be 7.5k tax for 4L (according to slabs) and 17,250 for 1.15L STG (15% tax) and since its above 5L you won't get any rebate and 4% CESS etc would make your tax to be around 26k
For new regime, it will be 5k tax for 4L (according to slabs) and 17,250 for 1.15L STG (15% tax), * corrected as per CA.Aniruddha.Rathi since there is no tax until 7L income your tax will be zero (as confirmed by Income Tax of India official link below😀)
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@CA.MAYANK.KOTHARI @CA.Aniruddha.Rathi please guide..
Tax Rebate under the New Tax Regime: A maximum rebate of Rs. 25,000 is applicable to resident individuals opting for the new tax regime under Section 115 BAC(1A) with a total income of up to Rs. 7 lakhs.
🏻
Here, seems like basic concepts are not clear.
People think that basic exemption limit is only Rupees 7 lakhs under NEW TAX REGIME, but that is not true.
Basic exemption limit under new tax regime is rupees 3 lacs only.
And you get rebate under section 87A up to Rs 25,000 if your income is below Rs 7 lacs.
Now, to answer your question,
There will be NO tax liability because of rebate 87A in your case. It is not just because your income is below Rs 7 lacs but it is because your tax liability before rebate under section 87A comes below Rs 25000.
Consider another example below then the concepts will be crystal clear for you.
Suppose your other income is rupees 4 lakhs and short term capital gain on shares is rupees 175000.
Now, calculation under new tax regime will be as below:
Tax at normal rate on rupees 4 lakhs : Rs. 5000
Tax at special rate of 15% on short term capital gain on shares of Rs. 175000 : Rs. 26250
Total Tax Liability: Rs. 31250
Rebate under section 87A: Rs. 25000 only
Balance tax liability: 6250
4% Cess: 250
Total Tax Liability including cess: Rs. 6500
Conclusion:
It is wrong to say that there is zero tax liability just because your income is below Rs 7 lacs.
Few incomes like short term capital gain on shares are having special tax rate.
So always calculate tax liability first without rebate and then see how much maximum rebate you get on it.
I hope I am very much clear now to make you understand the concepts.
𝓣𝓱𝓪𝓷𝓴 𝔂𝓸𝓾...
ᴡᴀʀᴍ ʀᴇɢᴀʀᴅꜱ,
ᑕᗩ. ᗩᑎIᖇᑌᗪᗪᕼᗩ SᑌᖇESᕼ ᖇᗩTᕼI
Hadapsar, Pune, Maharashtra