How to calculate Short Term Capital Gains for a non-salaried individual?

Hey @TeamQuicko

My wife is not a salaried individual and has started trading. All these transactions are in STCG. Suppose if she makes 12L in a year, after deducting 2.5 L, do I need to pay tax on 9.5L as per tax slabs (considering the old tax regime) or do I need to pay 15% on 9.5L? There is no intraday or F&O. Do help me out.

Hey @HarishMehta

Short Term capital gains are special rate incomes and taxed at 15%, so after deducting the basic exemption of INR 2.5 lakhs, you have to pay tax on STCG at the rate of 15% on INR 9.5 Lakhs. Additionally, if you had any losses the previous year, you carry forward these losses and adjust them this year against the capital gains to further reduce your liability. You must also keep in mind that you will not be able to claim any chapter VI A deductions on the short-term capital gains that you earn, in order to reduce tax liability.

Hope this helps!

Suppose I have salary income (after all deduction and exemption) is 11 lakhs, and the following are the realised gains:

  1. Equity short term gain 1000
  2. Debt short term loss 250

(Both of these are combination of profit and/or loss from multiple funds)

In this case, what will be my tax?

Will it be (11,00,000 - 250) * 30% + 1000 * 15%, i.e. debt short term loss will be adjusted by salary income?

Or, will it be 11,00,000 * 30% + 750 * 15%, i.e. debt short term loss will be adjusted by equity short term gain?

Or, will it be 11,00,000 * 30% + 1000 * 15% and 250 needs to be carried forward?

@Kaushal_Soni @AkashJhaveri @Saad_C @Divya_Singhvi @Laxmi_Navlani can you help with this?

Just to add to my question, which can be adjusted against what is something that’s really confusing me. I wanted to prepare the following table for my future reference, but I don’t know all the details. Every cell should have a yes/no saying whether type of loss in the corresponding row can be set off against the type of gain in the corresponding column or not, and if it is a yes, what will be the applicable rate of tax on the net gain, i.e. (gain - loss).

Can you guys please help me in filling it up? I’ll highly appreciate it, thanks.

Type of loss Short term gain
from equity funds
Long term gain
from equity funds
Short term gain
from other funds
Long term gain
from other funds
Income other than capital gain
(salary / interest / house property)
Short term loss
from equity funds
YES / 15% YES / ? ? ? ? / ?
Long term loss
from equity funds
NO / - YES / 10% NO / - ? ? / ?
Short term loss
from other funds
? ? YES / slab rate YES / ? ? / ?
Long term loss
from other funds
NO / - ? NO / - YES / 20% after indexation ? / ?

Hey @ztvusbqpvrco, you can refer to the following article for details regarding set off and carry forward of losses -

Hi @Maharshi_Shah, thanks for reply.

I saw this page before, but I am not clear on whether equity STCG can be used to set off debt STCL or not, or anything similar.

The table in the linked page says STCG can set off STCL, but does not distinguish between equity and non-equity funds. Also, no mention of rate on (gain-loss), so shall I assume the rate as per the gain?

If you please clarify that, it’ll be very helpful.

Hi @ztvusbqpvrco

Any STCG can be used to set off against any STCL. Thus, Equity STCG can be used to set off debt STCL.

Yes, tax will be levied as per the Applicable rates.

Hope this helps!

How to File income tax return in short term capital gain. In under situation?
Suppose I have Rs. 200,000 as capital and with this capital I gain Rs. 100,000( short term capital gain) and there are 100 transaction with said above capital.
My questions is what amount To be entered in
I) Full Value of Consideration.?
II) Cost of acquisition?

Hey @Arghyaraj_Basu, Full Value of Consideration to be entered in the case of short term capital gain would be 0. Moreover, the cost of acquisition is the price at which the shares were purchased.