Should I pay equity STCG tax if my income is below the exemption limit? | Mint

Advertise with OxBig News Network – WhatsApp Now +919501762829 

In FY25, I have short-term capital gains (STCG) from equity of ₹30,000 and my salary is ₹2.58 lakh per annum. Do I need to pay STCG tax?

If you’re earning ₹2.58 lakh annually and made ₹30,000 in STCG from stocks in FY25, the answer depends on your tax regime and residential status.

Assuming you’re an Indian tax resident under 60 years of age and have no other income besides the ₹2.58 lakh salary and ₹30,000 STCG, you are eligible for the basic exemption limit applicable under your chosen tax regime.

Also read: For regular income in retirement, you can’t beat debt mutual funds

Under the old tax regime, you can claim a standard deduction of ₹50,000 from your ₹2.58 lakh salary, leaving a net salary income of ₹2.08 lakh. Add your ₹30,000 capital gains, and your total income becomes ₹2.38 lakh—well below the basic exemption threshold of ₹2.5 lakh. So, no tax is payable.

Under the new tax regime, you are eligible for a higher standard deduction of ₹75,000. That reduces your salary income to ₹1.83 lakh. Adding the ₹30,000 STCG, your total income is ₹2.13 lakh, which is below the ₹3 lakh basic exemption limit under the new regime. Again, no tax would be payable.

The situation changes if you’re a non-resident for tax purposes. In that case, you cannot claim the basic exemption limit against short-term capital gains on listed equity shares or equity mutual funds. So, even if your income is below ₹2.5 lakh or ₹3 lakh, STCG will be taxable and you won’t be eligible for rebates or standard deductions.

Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.

If you have any personal finance query, write to us at [email protected] to get it answered by experts.

#pay #equity #STCG #tax #income #exemption #limit #Mint

short-term capital gains, STCG, tax exemption, income tax FY25, standard deduction, old regime, new tax regime, non-resident taxation, Section 87A, capital gains on equity, resident individual, stock tax India

latest news today, news today, breaking news, latest news today, english news, internet news, top news, oxbig, oxbig news, oxbig news network, oxbig news today, news by oxbig, oxbig media, oxbig network, oxbig news media

HINDI NEWS

News Source

spot_img

Related News

More News

More like this
Related