Short term Capital Gain Taxability under new regime if total income is 8 Lacs

Hi Friends,

 

I was going through multiple blogs, but not clear on below points. Could you please help me to understand of correct tax treatment

A) My wife have earned Short term capital Gain of 6 Lacs from Treasury bills investment. Is she also exempted as per new regime Rebate limit (Max of 7 Lacs) ?

B) My mom earned Dividend of 5.3 Lacs from Liquid bees and earned  Short term capital Gain of 1.3 Lacs from Treasury bills. Is she also exempted as per new regime Rebate limit (Max of 7 Lacs) ?

Could you please advise us ?

Thanks & Regards,

Balu

 

Replies (1)

I'll address your queries regarding the new tax regime and rebate limits.

New Tax Regime and Rebate Limit The new tax regime, introduced in the Finance Act, 2023, provides a rebate limit of ₹7 lakhs.

wThis means that individuals with a total income of up to ₹7 lakhs are exempt from paying income tax.

 *A) Your Wife's Short-Term Capital Gain* Your wife has earned a short-term capital gain of ₹6 lakhs from Treasury bills. Since this income is below the rebate limit of ₹7 lakhs, she is exempt from paying income tax.

 *B) Your Mom's Dividend and Short-Term Capital Gain* Your mom has earned: 1. *Dividend of ₹5.3 lakhs*: Dividend income is taxable, but it's also eligible for a deduction of ₹10 lakhs under Section 57 of the Income-tax Act, 1961.

Since the dividend income is below ₹10 lakhs, no tax is payable on this income. 2. *Short-term capital gain of ₹1.3 lakhs*: This income is also exempt, as the total income (dividend + short-term capital gain) is below the rebate limit of ₹7 lakhs.

Since your mom's total income is ₹6.6 lakhs (₹5.3 lakhs + ₹1.3 lakhs), which is below the rebate limit of ₹7 lakhs, she is also exempt from paying income tax.

 

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