@Surbhi_Pal I would like to know few things about captial gain taxes. If someone has only income from capital gains ie. Short term gain 3L and Long term gain 2.25L. Apart from this income, no other incomes. So if l’m not wrong upto 2.5L no IT under Old Regime & Nil upto 7L under New Regime - sec/87*. How about income taxes will be calculated for this situation.? Should pay 20% for STCG and 12% for 1L for LTCG or no tax upto 7L*
Hi @cancerpearl
Under old regime you can get rebate u/s 87A for taxes on all income including the capital gains. However, under new regime the rebate is applicable only for tax on incomes chargeable at normal rates and thus even if the income is less than 7 Lakhs but consists of only capital gains, then tax needs to be paid as per the applicable tax rates.
Hope this clarifies. For further clarification, please connect with me on Instagram @FinTaxSnippets.
Thanks,
CA. Pulkit Garg
1 Like
@garg.pulkit131 Sir, Thank you for your valuable inputs. How to avoid this tax if i choose new regime. someone was saying you could show your capital gains as trading business income. Is it possible.
Hi @cancerpearl
It depends on what is the gain arising from. If the gain is arising from sale of shares, etc which is a part of regular business activities then as per CBDT circular one can treat the gains either as Business Income or Capital Gains.
Hope this clarifes.
Thanks
1 Like
@garg.pulkit131 Thank you sir for your prompt response. I started very recently quicko for filing ITR. But here, i’m finding business income in that F&O and Intraday trades. Capital gains separately shown. So how to show my capital gains under business income? @Surbhi_Pal Please advice me