@Pinakin Patel Hello, gains through share market transactions is also income only, though tax treatment may be different for such receivables as per provisions. Am not any expert, but following points may be noted (furnished as per general understanding) :
1. LTCG upto Rs 1.25 L in a year is exempted from tax.
2. Rate of tax on LTCG is 12.5% plus cess.
3. STCG attracts tax @20% plus cess. However, upto 23 July, 2024 STCG will be taxed @ 15%
4. Under old regime within threshold of Rs 5L, benefits under 87A on STCG are available.
5. No benefits on STCG under 87A are applicable if ITR is filed in new regime.6. Basic exemption on income applies on capital gains too.
Here is an exercise to strengthen the understanding. Consider this example :
Income from other sources (dividend, interest etc) : Rs 1L
LTCG : Rs 1.5 L
STCG : Rs 0.5 L (up to 23/7/2024)STCG : Rs 2 L (after 23/7/2024)
Kindly confirm what will be tax applicability for above case under
1) old regime
2) new regime