Is short term capital gains taxable even if my total income including short term capital gains is under 5 lakh kindly advice.
Yes, it will be taxed.
As it is not a salary or profit but an income and is treated separately. from income for salaried or profits for business owners.
Hello @Vik
Under the New Regime, Rebate under Section 87A is not available on STCG taxed under Section 111A. If your total income exceeds the basic exemption and includes STCG, the STCG portion will be taxable as per the special rate.
What about old regime? Will stcg be taxed if total income including short term capital gains is under 5 lakh
In Old regime? Will stcg be taxed if total income including short term capital gains is under 5 lakh
Hello @Vik
Under the old tax regime, if your total taxable income (including short-term capital gains) is less than ₹5 lakh, you can claim a rebate of up to ₹12,500 under Section 87A.
For example, if your total income is ₹4,00,000 from short-term capital gains, it is taxed at 20%.
Your tax calculation:
Taxable income = ₹4,00,000 - ₹2,50,000 (basic exemption limit) = ₹1,50,000
Tax at 20% = ₹30,000
Since your total income is below ₹5 lakh, you get a rebate of ₹12,500 under Section 87A.
Final tax payable = ₹30,000 - ₹12,500 = ₹17,500.
Hope this help!