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Tejas Chokshi126 Answers  |Ask -

Tax Expert - Answered on Jun 12, 2023

Asked on - Jun 09, 2023Hindi

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Money
Sir, I am having long term gain of 524352 and Short term Gain of 932400 and F&O loss of 512352. No other income. Pls advise how my tax liability would be calculated.
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
(more)
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