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How is short term capital gain tax calculated?

Short term capital gain will be chargeable to income-tax under the head ' Income from Capital Gains'

I am falling in the 20 per cent tax bracket. If my short term gain through equity is INR 75000, what could be the tax liabilities on additional ₹75000? Do I have to pay 15 percent short term gains tax only or both short term capital gains and income tax?
- Rahul Pandya

You need to pay only short term capital gains tax. The five heads of income for computation of income tax in India are as follows:

  1. Income from Salary
  2. Income from House Property
  3. Income from Profits and Gains of Business or Profession
  4. Income from Capital Gains
  5. Income From Other Sources

Once an income is counted under one of these heads, it will not be counted again for calculation of taxes. In your case, the short term capital gain you made on shares will be chargeable to income-tax under the head ' Income from Capital Gains'. The short term capital gains are taxed at a special rate of 15 percent for equities, which will be ₹11250 (15 percent of ₹75000) in your case. This will be separately calculated, apart from your normal income tax on other heads of income like salary. While filing returns, you will have to fill the ITR 2 form.

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