Calculation of income tax along withSTCG through trading

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  1. jayskay

    jayskay New Member

    Hi Friends, I request you to help me compute tax for the following details of a tax payer who is a senior citizen:

    Total income (Pension and Interest earned on FDs) -- Rs 8.39 lakhs

    Short term capital gains thru share trading -- Rs 1.13 lakhs

    Amount deposited in PPF -- Rs 1.50 lakhs

    The tax payer is a senior citizen.
    Should the amount of STCG be added to the net income (8.39 - 1.50= 6.89)?
    Since STCG is taxed @ 15%, how do we calculate ? Kindly explain in detail.

    Thank you
    Last edited: Feb 21, 2015
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Tax would be levied @ 15% on Rs. 1.13 Lakhs = Rs. 16,950

    Tax on balance income would be levied as per the slab rates.

    The balance taxable income would be Rs. 8.39 Lakhs - 1.5 Lakhs Deduction = 6.89 Lakhs
    jayskay likes this.
  3. jayskay

    jayskay New Member

    Thank you Gaurav Kumar. I just want to know if the tax on 6.89 Lakhs (abt. 57000 Rs) and 16,950 be shown separately while filing tax. Are there separate columns in the ITR 1 while filing online? 1st page shows salary/pension and other income. Where should the capital gains of 1.13 lakhs be shown?
  4. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, they would be shown separately.

    Pension would be mentioned under head Salary
    Interest would be mentioned under head Other Sources
    Capital Gains would be mentioned under head Capital Gains

    As you have earned Capital Gains, you cannot use ITR 1. You would be required to furnish your return in ITR 2
    jayskay likes this.
  5. jayskay

    jayskay New Member

    Thank you once again Gaurav for clarifying my doubts.
  6. jayskay

    jayskay New Member

    Thank you once again Gaurav for clarifying my doubts.
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