Applicable tax rate

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2012 My total taxable income for the FYE 31.3.2012 will be around Rs.600,000/ and since I am a senior citizen my tax free exemption is upto Rs.5 lacs.However my total taxable income of Rs.6 lacs includes about Rs. 100,000/on short term capital gains and Rs 50,000/ as profit on Futures & Options. How do I calculate the tax to be paid and what shud be the amount payable by way of income tax.Some one was telling me that I have to pay 15% on Short term capital gains and 30 % on F& O.Experts opinion solicited. Thanks.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 March 2012 F&O income is not subjected to 30% Rate of Tax. It's a normal business income. I, however, appreciate your risk taking abilities at such an advanced age.
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The STCG is of 2 types. As you have said that you are an F&O player, I have liberty to take the STCG as arisen from STT paid Share Transactions.
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In such a case on your STCG 15% tax rate would be applied. Maximum amount which may be subjected to 15% rate is the amount of your STCG i.e. 1 lac. However, if say , your other income including F&O Income is
480000/- then you have to pay 15% on 80000/- only. Rs. 20000/ can be deemed to be adjusted in the exemption slab.
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However if STCG is other than shares, you may be at loss as the applicable slab above Rs 5.00 lac is of 20%.
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