Stcg is applicable as per slab or flat 20%?

Income Tax
1

Suppose there is no other income apart from capital gains , how stcg is taxed ? As per slab or flat 20% ?

2

Hello @Shridev_Nadiger

The Short-Term Capital Gains (STCG) is taxed at a flat 20% in the case of equity shares and equity-oriented mutual funds (covered under Section 111A) and at slab rates for other assets. In FY 2024-25, the basic exemption limit of ₹3,00,000 (for individuals under the new tax regime) is available, if income exceeds the exemption limit, the respective tax rates apply.

3

Thanks for reply @Shreya_Sharma
Just a scenario , suppose my STCG is 5 lakhs . In this case , 3 L will be basic exemption and 2L will be taxed at flat 20% . Is this correct?

4

Hi @Shridev_Nadiger,

Yes, your understanding is correct.

5

Hi @Shreya_Sharma , @Surbhi_Pal . Is basic exemption is applicable in LTCG too ? Suppose there is no other income and only LTCG is about 6 lakhs , how this will be taxed?

6

Hi @Shridev_Nadiger

Yes in case there is no income except from LTCG, then the amount over and above the maximum exemption limit will only be chargeable to tax. Hope this helps. Connect with me on instagram @FinTaxSnippets in case of any other concerns.

Thanks,
CA. Pulkit Garg

7

Hey @Shridev_Nadiger,

Yes, if LTCG is your only income, the basic exemption is applicable. From FY 25-26, you get a basic exemption of ₹4 lakh.

Additionally, if the gains are from listed stocks and equity mutual funds, you get an extra exemption of ₹1.25 lakh.

The remaining LTCG will be taxed at 12.5%.