Hi,
For financial year 2025-26,
I have 2 scenario.
(1)
If I have STCG on Stock/Mutual Fund RS 4,00,000. No other income.
So according to slab rate 0 to 4,00,000 no tax.
Do I need to pay 0 tax?
(2)
If I have LTCG on Stock/Mutual Fund RS 5,25,000. No other income.
5,25,000 - 1,25,000(benifit of limit) = 4,00,000
Than,
according to slab rate 0 to 4,00,000 no tax
Do I need to pay 0 tax?
Can you explain, how to calculate it?
Basic exemption limit is Rs. 3 lakhs. Being no other income the Capital gains in both cases will get reduced by the basic exemption.
For Capital gains u/s. 111A & 112A the rebate under sec. 87A not eligible. So pay tax at special rates for remaining 1 lakh capital gains.
But for financial Year 2025-26 new basic examption limit is Rs. 4 lakhs still need to pay TAX. Can you explain.
For AY 2026-27 (FY 2025-26), tax on listed equity shares:
STCG (sold within 12 months): 20% under Section 111A plus 4% cess. Section 87A rebate does NOT apply on this, even if total income is below Rs 12 lakh.
LTCG (sold after 12 months): 12.5% under Section 112A plus 4% cess. First Rs 1.25 lakh of LTCG is exempt.
Section 87A + capital gains: The rebate (which brings tax to zero for income up to Rs 12 lakh) applies only to income taxed at slab rates. STCG and LTCG are taxed at special flat rates, so the rebate does not reduce capital gains tax. This surprises many investors.
Setting off losses: STCL can offset both STCG and LTCG. LTCL can only offset LTCG.
Which ITR form: ITR-2 for salaried individuals with capital gains only; ITR-3 if you also have intraday trading (which is business income at slab rates).
Brokers like Zerodha and Groww provide a downloadable capital gains P&L statement that maps directly to the ITR-2 Schedule CG fields. Upload this or enter manually by scrip.
This [pre-filled ITR guide for AY 2026-27](https://taxgarden.in/blog/pre-filled-itr-how-to-verify-check-correct-errors-ay-2026-27) covers how AIS pre-fills capital gains and how to verify the values before submitting.
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