Salary Income + STCG + LTCG Tax Calculation [VIDEO]

How Income Tax Calculation 2025-26 will be done? Based on new tax regime in FY 2025-26, no tax up to 12 Lakh taxable income will be paid by tax payers. This means, for salaried employees, considering standard deduction of 75,000, no tax will be paid up to 12.75 lakh in financial year. You get rebate of Rs. 60,000 with new tax regime up to 12 lakh taxable income, but this rebate is not applicable with STCG and LTCG profits you make. You pay 20% tax on STCG profit and 12.5% tax on profits above 1.25 lakh for LTCG in a financial year, irrespective of your tax bracket.

Table of Contents

Salary Income + STCG + LTCG Tax Calculation Video
Income Tax Calculation on Salary
What is Marginal Relief in New Tax Regime Video
STCG Tax Calculation
LTCG Tax Calculation
Conclusion

Let us understand how your salary income, FD interest, STCG and LTCG will be taxed in detail.

Salary Income + STCG + LTCG Tax Calculation Video

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Income Tax Calculation on Salary

Income Tax Calculation 2025-26 can be done based on the tax slab rates
For salaried employee, no tax have to be paid on income up to 12 lakh in FY 2025-26
Based on calculations, your tax liability is Rs. 60,000 based on 5% and 10% slab rates on income of 12 lakh. This tax is cancelled due to maximum tax rebate of Rs. 60,000 with new tax regime
Hence, with standard deduction of 75,000, you don’t have to pay any income tax up to 12.75 lakh for salaried employees
Also you get few deduction options in new tax regime that can help you to save income tax
You can claim employer’s contribution to NPS (National Pension System), home loan EMI interest amounts for let our property and few more allowances to save income tax with new tax regime

Below are the tax slab rates for FY 2025-26 with old and new tax regime:

So based on above slab rates, the income tax will be calculated in FY 2025-26
You also get Marginal Relief benefit with new tax regime, based on which, if your taxable income is slightly above 12 lakh in financial year, you only have to pay the difference between your income and 12 lakh income and not based on 5% and 10% slabs
So for example, if your income is 13 Lakh, below is the calculation with new tax regime

Items	Without Marginal Relief	With Marginal Relief
Income	Rs. 13 Lakh	Rs. 13 Lakh
Standard Deduction	Rs. 75,000	Rs. 75,000
Taxable Income	Rs. 12.25 Lakh	Rs. 12.25 Lakh
Income Tax	Rs. 63,750	Rs. 25,000
Cess 4%	Rs. 2550	Rs. 1000
Total Income Tax	Rs. 66, 300	Rs. 26,000

As seen above, your income tax will be Rs. 66,300 without marginal relief benefit, but with marginal relief, you only have to pay Rs. 26,000 with new tax regime.

You can also download the Income Tax Calculator 2025-26 in excel:

Watch Marginal relief examples in below Video

What is Marginal Relief in New Tax Regime Video

STCG Tax Calculation

STCG full form is short term capital gains
The profits you make within a financial year based on the shares or equity mutual funds that you sell can lead to STCG
The capital gains or profits made are categorized as short term capital gains (STCG) or long term capital gains (LTCG)
If you sell the shares or equity mutual funds within 1 year of holding period, the profit you make is called short term capital gains
On this profits, you have to pay 20% of flat tax, irrespective of the tax bracket you belong to
You can watch above video to understand more about the STCG tax calculation examples
Also, if you have no other income apart from Short term capital gains, the STCG profits is exempted using basic exemption limit of Rs. 2.5 Lakh and Rs. 4 Lakh with old regime and new regime respectively
Note that the STCG profits and income from salary or business are taxed separately, based on 20% rate and slab rates respectively.

WATCH: STCG Tax Calculation Examples

LTCG Tax Calculation

LTCG full form is Long Term Capital Gains
You have to pay 12.5% tax on profits made above Rs. 1.25 Lakh in a financial year
Note that it does not matter in which tax bracket you belong to, you have to pay tax on LTCG based on profits above 1.25 lakh in financial year
For example, if LTCG is 2 lakh in financial year, the 1.25 lakh will be tax free and remaining 75,000 will be taxed at 12.5%. So LTCG tax will be Rs. 9375, plus cess of 4% will be added

Conclusion

So based on above tax calculation examples, salary or business income will be taxed as per the tax slab rates. STCG and LTCG profits tax will be calculated based on 20% and 12.5% on profits above Rs. 1.25 Lakh in a financial year.

You also get marginal relief benefit with new tax regime on income slightly above Rs. 12 lakh.

Some more Reading:

Save Home Loan Interest Amount!

Use Home Loan Excel Calculator that will help you to Save Interest Amount on Home Loan EMI.
Click below button to download Home Loan EMI and Prepayment Calculator in Excel:

Watch how Home Loan Calculator in Excel Works

Income Tax Calculator App – FinCalC

For Income Tax Calculation on your mobile device, you can Download my Android App “FinCalC” which I have developed for you to make your income tax calculation easy.

What you can do with this mobile App?

Calculate Income Tax for new FY 2024-25 and previous FY 2023-24
Enter estimated Investments to check income tax with Old and New Tax Regime
Save income tax details and track regularly
Know how much to invest more to save income tax
More calculators including PPF, SIP returns, Savings account interest and lot more

Download Income Tax Calculator APP from play store

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