STCG and LTCG Taxation

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!

@TeamQuicko @Divya_Singhvi

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Hi @FalconZex

  1. Yes you are right the tax payable shall be 10,000 INR
  2. Rebate is applicable on total tax liability Section 87A does not exclude any income specifically.
  3. In such a case no rebate shall be available. The tax rate shall be as under:
  • On business income of 2 lakhs INR: 5%

  • On STCG of 2 lakhs INR: 15%

You can also refer to our Income Tax Calculator

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