Taxes on LTCG and Salary

Income Tax Income from Capital Gains
1

I have an annual salaried income of 700000. and Long term capital gains of 125000. What would be my taxes?

Also, would rebate applicable? because my overall income exceeding 700000.

2

Hello @Charan

From current FY, LTCG is exempt upto 1.25 lakhs, thus you do not have to pay any tax on the same.

Also, there is no income tax upto 7 lakh of normal income because of rebate.

Thus, in your case there is no tax liability.

Thank you.

3

Thank you very much Akash

4

For the financial year 2024-25, your ₹7 lakh salary is tax-free due to the rebate on income up to ₹7 lakh. Additionally, long-term capital gains (LTCG) are tax-free up to ₹1.25 lakh. Therefore, with ₹1.25 lakh in LTCG, your total income remains within the tax-free limits, resulting in no tax liability.

5

Hi @stellarhomes_develop @AkashJhaveri
Thank you for the response,
Salary income 7Lakh
LTCG 1.25 lakh
Dividends and interest 36000.
Then What should I do to decrease the taxes?

6

Hi @Charan

In case of Salary, Standard Deduction of 75,000 is also applicable. If the amount of Salary Income which you have mentioned is before considering Standard deduction, then your taxable salary shall be 6.25 Lakhs and other income shall be 36000. The overall taxable income will still be under 7 Lakhs and thus no tax liability shall arise in your case. Hope this clarifies.

Regards,
CA. Pulkit Garg