I am a senior citizen.
During FY26, my pension income is ₹7.50 lakh, bank interest – ₹3.50 lakh, dividend ₹0.20 lakh in total, ₹11.20 lakh.
Suppose If I earn short-term profit in share trading of ₹1.50 lakh, the total income works out to ₹12.70 lakh.
Please clarify the following:
* What is the tax liability for the above situation?
* If my total income is lesser than ₹12 lakh inclusive of short-term profit on share of 1.50 lakh, should I have to pay 20 per cent STCG tax for share trading profits?
V Avichi
Based on the income details — pension, interest, dividend and short-term capital gains, your tax liability for the year 2025-26 will be ₹31,200. This is on the assumption that the shares traded are subject to securities transaction tax and accordingly in terms of section 111A, the short-term capital gains (STCG) are taxed at the rate of 20 per cent. Refer table below. You would still have to pay tax on STCG, as they are subject to special rate of tax at 20 per cent even though your total income is less than ₹12 lakh.
The writer is Partner, Deloitte India
Published on August 30, 2025
