What taxes to pay if I get 1 crore gain through the stock market in current Financial Year

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If you've made a £1 crore long-term capital gain from stocks this financial year, you'll need to understand the tax implications, especially with your existing £54 lakh income. The tax on this capital gain is typically calculated at a rate of 12.5%, separate from your income tax slab rate applied to your salary and FD interest. This means the £1 crore gain itself won't be added to your taxable income for slab rate purposes, but will be taxed at the specified capital gains rate.

D M

D M (Querist)

09 August 2024 Hi Experts,
I just want to understand tax implications after the recent budget changes.

If I hold stocks from past few years and and sell them in current financial year (Long term) and gain 1 crore .

My current income from other sources salary , FDs is around 54 lacs for a year.

So how will my tax be calculated on my total income ?

Thanks,

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 August 2024 On Long term capital gains from shares investment rate is 12.5%
While for FD interest, it is as per slab rate

D M

D M (Querist)

09 August 2024 Thanks Dhirajlal Sir.

So the 1 crore capital gain wont be considered again in my Income tax calculation (54 Lacs) and I have to only pay 12.5% for the 1 crore gain .

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 August 2024 Yes, u/s. 112A IT act...

D M

D M (Querist)

09 August 2024 Thank you Sir for prompt reply as always

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

09 August 2024 You are welcome.

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