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Should I pay tax on my short-term capital gains of Rs. 95,000?

T S Khurana

T S Khurana   |562 Answers  |Ask -

Tax Expert - Answered on Aug 10, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Kousik Question by Kousik on Aug 02, 2024Hindi
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I have earned a STCG of Rs 95000/- by selling shares/stocks . Whether I have to pay tax on it?

Ans: Payment of STCG tax depends on so many factors, like What's your total income from all other sources, your age, tax savings etc.
If you have no other Income under any head, you may not have to pay any tax.
Most welcome for any further clarifications. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Hardik

Hardik Parikh  | Answer  |Ask -

Tax, Mutual Fund Expert - Answered on Jul 27, 2023

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Goof afternoon sir, I My friend have STCG from shares about Rs 95000, dividend from shares is around Rs 12000. There is no other income. please guide whether he has to pay any tax or need to return the file.
Ans: Good morning Prakash,

Based on the information you've provided, your friend has Short Term Capital Gains (STCG) from shares amounting to Rs 95,000 and dividend income of Rs 12,000.

As per the tax rules in India for the financial year 2023, STCG from shares are taxed at a rate of 15%. However, if the total taxable income, including STCG, is less than the basic exemption limit (which is Rs 2.5 lakhs for individuals below 60 years), then no tax is payable.

In your friend's case, the total income (STCG + Dividend) is Rs 1,07,000 which is below the basic exemption limit. Therefore, he doesn't need to pay any tax on this income.

Regarding the dividend income, as of the financial year 2023, dividend income up to Rs 10 lakhs is exempt from tax. So, your friend doesn't need to pay any tax on the dividend income of Rs 12,000.

However, even if there is no tax payable, it is advisable to file an income tax return if the total income exceeds the basic exemption limit. In your friend's case, since the total income is below the exemption limit, he is not mandatorily required to file a return. But he may choose to do so for record-keeping purposes.

Please note that this is a general advice and the tax liability may vary based on individual circumstances. It's always a good idea to consult with a tax advisor for personalized advice.

I hope this helps!

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Nayagam P

Nayagam P P  |11009 Answers  |Ask -

Career Counsellor - Answered on Apr 18, 2026

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Sir, My son has appeared in Class X ICSE Exam and results are awaited. So far , he has been an average performer academically. I believe he is capable and he can do great if he puts in the hard work. His performance in subjects like History/Geography etc has always been better than in Maths/science. I personally never wanted to force him to choose any stream for higher studies. He also is not sure about it. While discussing I suggested him to go for Commerce or humanities stream and then for MBA from a reputed institution. However, he is more concerned about job opportunities and wanted to go for science. Hence, after a lot of discussion, we have got him admitted in Science stream in Delhi and also got him enrolled in Allen for JEE Coaching. We thought if he adapts well and gets going, then may be he can achieve good result. Otherwise, we may decide to change stream after Class XII. What is your opinion? Request for your suggestion please
Ans: Shyam Sir, I have thoroughly reviewed your son’s background. You haven’t mentioned whether he is continuing with the ISC board or has enrolled in the CBSE board with Allen-JEE coaching for this 11th/12th Grade. Firstly, I recommend a psychometric test for your son to gain a rough idea of the most suitable career options for him.

Secondly, job opportunities exist across domains, but to be competitive, your son must have passion and interest in his chosen field and continuously upgrade both technical and soft skills relevant to that domain.

Thirdly, besides understanding suitable career options through the psychometric test, ask him what types of problems he is interested in solving in the future.

Fourthly, since you mentioned his performance is better in History and Geography than in Science and Maths, Allen-JEE coaching would be suitable only if he is truly interested in Maths and Science. If not, his performance may fall short of expectations, leading to demotivation.

My suggestion is to consider enrolling him in the Arts/Humanities stream with a focus on Geography-centric subjects. Later, he can pursue civil services, media, law, or management studies. Reassess his progress after about a year (by December 2026), focusing on his interest, mental health, and realistic performance rather than perceived job security alone.

Before he completes 11th grade (by February 2026), you both can collectively decide and start preparing for entrance exams in law, media, or management (CUET, CLAT, IPMAT, NPAT, SET etc.) based on his interests and future plans. ALL the BEST for Your Son's Prosperous Future!

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Nayagam P

Nayagam P P  |11009 Answers  |Ask -

Career Counsellor - Answered on Apr 18, 2026

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Sir my son is expected to score 90+% in 12th boards typically between 93-95% of board marks .. and 90% and above pcm cutoff .. is he now eligible with this met score of 125 marks and 12th score for admission in mit manipal mechanical? . . Also i need a guidance about aeee also . Since my son scored 90.3 percentile in aeee entrance phase . Is he eligible for slab 1 mechanical engineering in aeee ? Kindly support pl
Ans: Bala Sir, I have already addressed the first part of your question, confirming that the chances of him getting admission into the Mechanical branch at Manipal are higher. The official handbook of AMRITA states that seat allotment and scholarship consideration are done through CSAP allotment. Your son may secure a Mechanical seat, but Slab 1 cannot be guaranteed unless his final AEEE rank or JEE percentile is strong enough at the time of CSAP choice allotment. Slab 1 is based on merit ranking, not raw marks. His 125 AEEE marks will be converted into a rank relative to all candidates; if many score higher, the Slab 1 cutoff will rise. Therefore, raw marks alone do not guarantee Slab 1.

The chance of getting a Mechanical seat from Slab 2 is moderate at Amrita Coimbatore and highly probable at the Bengaluru campus. It’s advisable to have 2-3 backup options besides Manipal and Amrita. Mechanical Engineering is generally less competitive than CSE or ECE, but having backups is still wise. ALL the BEST for Your Son's Prosperous Future!

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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