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STCG and LTCG tax exclusions and how they are included in actual tax

Others 209 views 2 replies

Balakrishna Reddy

1 Points Posted on 29 December 2018

for example
my monthly income :22000rs
per month EPF deduction:3600rs
investing in ELSS FUNDS per month:1000rs
paying premium for health insurance:6000 rs per year
paying premium for term insurance:7000 rs per year
STCG from stocks :50000 rs
LTCG from stocks: 150000 rs
now how can I calulate tax for this and what is the final tax should I pay for this example

Replies (2)

Rakesh Bandal

Self Employed and Agriculture

1349 Points Posted on 29 December 2018

Approx Calculations

Normal net taxable income after all dedcutions and savings = Rs. 195,800/-

LTCG on stocks = Rs. 150,000 - exemption U/s. 10(38) Rs. 150000/-

STCG = Rs.50,000/- - Basic exemption not covered Rs. 54200/-

Net Taxable Rs. 0

Tax calculations

STCG = Nil

LTCG = Nil

Normal Income = Nil

Parth Soni

38 Points Posted on 30 December 2018

after applying the basic exemption limit to whole income the balance LTCG & STCG are taxed at a special rate irrespective of slab rate according to relevant section