Tax on Short Term Capital Gains - STCG

I my gross salary is 3.5 lakh means not taxable and my yearly equity share profit is 20,000 then i want to know is that will i pay 15% stcg tax on 20,000 or not ?

Hi @Kuldeep_Singh

Yes, there will be a tax liability on your STCG Income since the total income exceeds the basic exemption limit. However, if you are a resident individual you will get a tax Rebate u/s 87A since your income is less than 5 lakh INR.

My gross salary is 4,50,000 (only 2,00,000 taxable income from salary) and earn stcg profit is 20,000 and my age is 35…

  1. As per stcg exemption limit, no tax on
    Resident individuals who are below 60 years of age with an annual income of Rs. 2.5 Lakh.
    here 2.5 lakh what , total income or total taxable income amount ?

total income = 4,50,000 + 20,000 = 4,70,000
total taxable income = 2,00,000 + 20,000 = 2,20,000

  1. my gross income is 4,50,000 and my stcg profit is 20,000.
    Do i need to pay stcg 15% tax or not ?

  2. is Tax audit required or not ? when it is required

KS

Hi @Kuldeep_Singh

  1. 2.5 lakhs refers to your total income.
  2. There will be a tax liability of STCG, however, you will get a rebate u/s 87A. Post rebate if there is any amount payable then you need to pay that amount.
  3. Tax audit applicability comes into the picture when you have Income from Business & Profession (includes intraday and F&O). You can check if the audit is applicable or not here.

POINT 1. you mean to say, my total income is 4,70,000 which is higher than 2,50,000. am i right ?

Hi @Kuldeep_Singh

Yes Sir

my total income (4,70,000) > exemption limit (2,50,000) then i am liable to pay 15% STCG tax…
but your point2 reply is “There will be a tax liability of STCG”. How ?

Hi @Kuldeep_Singh

You can adjust your capital gains for any shortfall in the basic exemption limit to reduce your income tax outgo. However in the above case since your other income is more than basic exemption the tax shall be calculated on the same as well as STCG. And then the rebate shall be applied.

You can check out our Income Tax Calculator

ok , indirectly maximum limit is 5,00,000 which including rebate u/s 87A …am i right ?

Hi @Kuldeep_Singh

Yes if your income is below 5 Lakhs INR.

my salary income is 200000 and stcg was 542258 for FY 20-21, how is my tax calculated ?

is STCG(short term capital gains) applicable if trading in Nifty/BankNifty (Indices) & carryforward the position? , i.e buy nifty lot on day ‘1’ & sell that on day ‘4’.

Hi @godara8706, you can add your income situation in the below income tax calculator to know your tax liability under the old & new tax regime.

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

Hello @ignorant007 ,

Any gains/losses from trading in Futures & Options (F&O) shall be considered as your business income/loss and will be taxed under the head Profit & Gains from Business & Profession.

It won’t make any difference if you carry forward your F&O position from day 1 to day 4. The resulting profit/loss shall be still considered as your Business Income and not Capital Gains.

Hope it helps!

My wife is house wife,she has invested in shares in 2020-2021 and earned profit around 7000 she don’t have any other earning,she has invested from her saving ,which she earned7 years before and tax paid for the earnings

Hey @Sathyajal, since there are capital gains involved, it is recommended that she files ITR 2 - Income from Capital Gains to disclose the income received from the trading activity.

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Sir I have sold some shares before 1 year.
I gained 4.5lakh but I did not with draw money from demat account. But I further bought some share. Do I need to pay tax ? I paid taxes . So what to do now?

Hey @bajramber85, yes, you should file ITR to disclose the income you have received from trading even if you have not withdrawn money from your demat.