2.5 Lakh Gain and 12 Lakh Salary: How Much Tax Will I Pay?

Ans: To calculate your tax liability in India based on the provided information, we need to consider the tax rates for long-term capital gains (LTCG) and short-term capital gains (STCG), as well as the treatment of losses from Futures and Options (F&O).

Long-term capital gains (LTCG):

LTCG on shares is taxable at a rate of 10% if the gains exceed Rs. 1 lakh.
In your case, the LTCG is Rs. 524,352, which is below the threshold of Rs. 1 lakh. Therefore, tax is payable on the LTCG @ 10% of Rs. 424,352 = Rs. 42435/=
Short-term capital gains (STCG):

STCG on shares is taxable at the applicable income tax slab rates.
Assuming you fall under the highest income tax slab rate of 30%, the tax on STCG would be calculated as follows:
STCG tax = STCG * tax rate
= 932,400 * 30%
= 279,720
Losses from Futures and Options (F&O):

F&O losses can be set off against both long-term and short-term capital gains.
In your case, the F&O loss is Rs. 512,352.
Since you have both long-term and short-term gains, you can set off the F&O loss against these gains.
Calculating the tax liability:

Net Short-term Capital Gains (STCG): 932,400

F&O Loss: -512,352

Taxable Short-term Capital Gains: 932,400 - 512,352 = 420,048

Tax on Short-term Capital Gains: 420,048 * 30% = 126,014.40

Total Tax Liability:
Tax liability = Tax on Short-term Capital Gains
= 126,014.40

Long term capital = 42435=20

Ans: Your income is below 7 lacs and gross tax liability will be 16380. Under new tax regime, you are eligible for rebate upto 25000. However matter is litigative. As per recent judicial decisions, rebate is available even against income taxable as per provisions of 111A.

Accordingly, in my view, tax liability will be Zero

You can calculate tax liability from income tax calculator available at https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator

Ans: Please confirm, which Financial year you are referring ?
Most welcome for any further clarifications. Thanks.

Ans: Kindly provide Long term capital gains is from which source - Shares, MF, sale of asset etc.
Then only we shall be able to guide

Vipul Bhavsar
Chartered Accountant
www.capitalca.in

Ans: Hello, as per the New Tax Regime, no taxes for salaried people up to 12.75L including the 75K standard deduction.
For CG on mutual funds the tax is 12.5% over 1.25L of gains