Form 2

[siddharth1630]

my salary is 5.6L/ year and my total short term capital gain is 25k .
why this 25k is not added in my salary ?????
it shows that i have to pay tax of 4k which is 15% of my STCG but why it's asking as my total income is less than 7L.
Am i missing something ??
plz help me on that

 

[hitirfan]

@Tax with Ria
@Tax via anoop @TaxWiser

 

[Tax with Ria]

my salary is 5.6L/ year and my total short term capital gain is 25k .
why this 25k is not added in my salary ?????
it shows that i have to pay tax of 4k which is 15% of my STCG but why it's asking as my total income is less than 7L.
Am i missing something ??
plz help me on that

Well, for this I've to check your return

 

[Tax with Ria]

Well, for this I've to check your return

Rebate does not applies to STCG in new tax regime

 

[Deb.]

Fill the STCG details in section 111A.

 

[TaxWiser]

my salary is 5.6L/ year and my total short term capital gain is 25k .
why this 25k is not added in my salary ?????
it shows that i have to pay tax of 4k which is 15% of my STCG but why it's asking as my total income is less than 7L.
Am i missing something ??
plz help me on that

Certainly! Let's break down your query and provide a solution.

●Understanding Your Tax Situation

1. Salary and Short-Term Capital Gains (STCG):
- Your annual salary: ₹5.6 lakhs
- Your STCG: ₹25,000
2. Taxation on STCG:
- STCG on equity shares and equity-oriented mutual funds is taxed at a flat rate of 15% under Section 111A of the Income Tax Act, irrespective of your income slab.

●Why STCG is Not Added to Salary:
- STCG is considered a separate category of income and is taxed at a special rate (15%) rather than being added to your salary and taxed at the normal slab rates.

●Total Income Calculation:
- Your total income for tax purposes is the sum of your salary and STCG.
- Total Income = ₹5.6 lakhs (salary) + ₹25,000 (STCG) = ₹5.85 lakhs

● Tax Calculation:

Salary Tax Calculation:​

- Since your salary is ₹5.6 lakhs, you fall under the 5% tax slab for income between ₹2.5 lakhs and ₹5 lakhs, and 20% for income above ₹5 lakhs.​

- Tax on Salary = ₹12,500 (5% of ₹2.5 lakhs) + ₹12,000 (20% of ₹60,000) = ₹24,500​

STCG Tax Calculation:​

- Tax on STCG = 15% of ₹25,000 = ₹3,750​

Total Tax Payable:​

- Total Tax = Tax on Salary + Tax on STCG = ₹24,500 + ₹3,750 = ₹28,250​

● Why You Are Asked to Pay Tax on STCG:
- Even though your total income is less than ₹7 lakhs, the special rate of 15% on STCG applies separately. The ₹4,000 tax you mentioned is likely rounded from the actual ₹3,750.

● Possible Deductions and Exemptions:
- Ensure you are claiming all eligible deductions under sections like 80C, 80D, etc., which can reduce your taxable income in Old Tax Regime.

Hope this resolve your doubts @siddharth1630

Also Thanks to @hitirfan for mentioning

(Source: Conversation with Gemini AI)

 

[siddharth1630]

Certainly! Let's break down your query and provide a solution.

●Understanding Your Tax Situation

1. Salary and Short-Term Capital Gains (STCG):
- Your annual salary: ₹5.6 lakhs
- Your STCG: ₹25,000
2. Taxation on STCG:
- STCG on equity shares and equity-oriented mutual funds is taxed at a flat rate of 15% under Section 111A of the Income Tax Act, irrespective of your income slab.

●Why STCG is Not Added to Salary:
- STCG is considered a separate category of income and is taxed at a special rate (15%) rather than being added to your salary and taxed at the normal slab rates.

●Total Income Calculation:
- Your total income for tax purposes is the sum of your salary and STCG.
- Total Income = ₹5.6 lakhs (salary) + ₹25,000 (STCG) = ₹5.85 lakhs

● Tax Calculation:

Salary Tax Calculation:​

- Since your salary is ₹5.6 lakhs, you fall under the 5% tax slab for income between ₹2.5 lakhs and ₹5 lakhs, and 20% for income above ₹5 lakhs.​

- Tax on Salary = ₹12,500 (5% of ₹2.5 lakhs) + ₹12,000 (20% of ₹60,000) = ₹24,500​

STCG Tax Calculation:​

- Tax on STCG = 15% of ₹25,000 = ₹3,750​

Total Tax Payable:​

- Total Tax = Tax on Salary + Tax on STCG = ₹24,500 + ₹3,750 = ₹28,250​

● Why You Are Asked to Pay Tax on STCG:
- Even though your total income is less than ₹7 lakhs, the special rate of 15% on STCG applies separately. The ₹4,000 tax you mentioned is likely rounded from the actual ₹3,750.

● Possible Deductions and Exemptions:
- Ensure you are claiming all eligible deductions under sections like 80C, 80D, etc., which can reduce your taxable income in Old Tax Regime.

Hope this resolve your doubts @siddharth1630

Also Thanks to @hitirfan for mentioning

(Source: Conversation with Gemini AI)

Thankx for explaining this in detail. i understood that i have to pay 15% on STCG if my salary within 7Lakh slab.

 

[siddharth1630]

Rebate does not applies to STCG in new tax regime

Thankx