CMA ALOKESH DUTTATo compute the income tax liability for an individual with a total income of ₹11,00,000, which includes ₹2,00,000 as short-term capital gains (STCG) and ₹3,00,000 as long-term capital gains (LTCG), under the new tax regime for the financial year 2025-26, we can follow these steps:
1. Understand the Income Components:
Short-Term Capital Gains (STCG): Gains from assets held for less than 12 months.
Long-Term Capital Gains (LTCG): Gains from assets held for more than 24 months.
2. Tax Rates Applicable:
STCG: Taxed as per the individual’s applicable income tax slab rates.
LTCG: Taxed at a flat rate of 12.5% for gains exceeding ₹1,25,000.
3. Calculate Tax on LTCG:
Taxable LTCG: ₹3,00,000 (Total LTCG) – ₹1,25,000 (Exemption) = ₹1,75,000
Tax on LTCG: ₹1,75,000 * 12.5% = ₹21,875
4. Calculate Tax on Remaining Income:
Total Income Excluding LTCG: ₹11,00,000 – ₹3,00,000 = ₹8,00,000
Income Tax Slabs for FY 2025-26:
Up to ₹3,00,000: Nil
₹3,00,001 to ₹7,00,000: 5%
₹7,00,001 to ₹10,00,000: 10%
₹10,00,001 to ₹12,00,000: 15%
₹12,00,001 to ₹15,00,000: 20%
Above ₹15,00,000: 30%
Tax Calculation:
Income up to ₹3,00,000: No tax
Income from ₹3,00,001 to ₹7,00,000: ₹4,00,000 * 5% = ₹20,000
Income from ₹7,00,001 to ₹8,00,000: ₹1,00,000 * 10% = ₹10,000
Total Tax on Remaining Income: ₹20,000 + ₹10,000 = ₹30,000
5. Total Tax Liability:
Tax on LTCG: ₹21,875
Tax on Remaining Income: ₹30,000
Total Tax Payable: ₹21,875 + ₹30,000 = ₹51,875
6. Health and Education Cess:
Cess: 4% of Total Tax Payable
Cess Amount: ₹51,875 * 4% = ₹2,075
7. Final Tax Liability:
Total Tax Payable: ₹51,875 + ₹2,075 = ₹53,950
Therefore, the total income tax liability for the individual would be ₹53,950 for the financial year 2025-26.
*Note: Tax laws are subject to change. It’s advisable to consult the late
st official tax guidelines or a tax professional for accurate calculations.*
