Zero tax limit of Rs. 12 lakhs and Capital Gain (STCG)

Income Tax
1

I have the following sources of income:
• Pension income of ₹10,00,000
• Interest income of ₹1,50,000
• Short-term capital gains (STCG) of ₹2,00,000

What would be my income tax liability under the new tax regime?

2

Hello @Govindan,

Welcome to the community!

Your total income (pension + interest) comes to ₹11.5 lakh, which is within the ₹12 lakh rebate limit under the new tax regime. So, no tax is payable on this portion due to the full Section 87A rebate.

However, the rebate does not apply to short-term capital gains taxed at special rates. Therefore, STCG of ₹2,00,000 will be taxed at 20%, plus 4% cess.

Here’s the tax calculation:

₹2,00,000 × 20% = ₹40,000
Cess @ 4% = ₹1,600

So, your total tax payable is ₹41,600.

Hope this helps!

1 Like
3

Under the new tax regime, income up to ₹12 lakh gets full Section 87A rebate, but short-term capital gains (STCG) are taxed separately at 20% plus cess, so tax of ₹41,600 on ₹2 lakh STCG.

4

But what about LTCG?

If in this case individual also has long term capital gains from selling equity mutual funds or shares,then is it covered under 12 lakhs exemption.