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Treatment of Income from STCG

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This query is : Resolved

Shyam T (Querist)

28 December 2024 I am a retired person having income only from FD Interests and capital gains of Equity / mutual funds. My interest income from FD is below Rs 2.5 lakhs. However my STCG from equity is about Rs 10 Lakhs p.a Do I have to consider the STCG income to arrive at the slab rate for the FD Interest income ? Or Can I claim exemption from Tax on the FD Interest income as it is below the basic exemption limit ? Will they both be combined for arriving at the slab rate ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

28 December 2024 Slab rate will be applicable for FD interest only, while STCG will be taxed at special rate. When aggregate income is in question, they both gets aggregated, but not while applying slab rate. Basic exemption of 3 lakhs applies over aggregate, so in this case, net tax liability will be over 9.5 lakhs at 20% rate (for AY 2025-26).

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