Tax slab calculation 2026: Should capital gains be excluded from gross income?

Moreover, deductions under Chapter VIA are not available against LTCG and STCG from the sale of listed shares. So your claim for deduction under various sections of Chapter VIA will be restricted to your income from other sources and not beyond that if you opt for the old tax regime.

Please note that in case your normal income after these deductions goes below the exemption limit, such shortfall against the basic exemption limit applicable is allowed to be set off against taxable capital gains, and tax at a flat rate is payable only after such set off of shortfall in basic exemption against capital gains.

The basic exemption limit for a senior citizen, who has completed 60 years but has yet to complete 80 years, is ₹3 lakh under the old tax regime, whereas it is ₹4 lakh under the new tax regime, irrespective of your age.

The LTCG and STCG on listed shares are taxed at a flat rate of 12.50% and 20% respectively, and, therefore, the same are excluded while determining the slab rate applicable.

Since you are a senior citizen and do not have any business income, you are not required to pay any advance tax. You can discharge your tax liability at the time of filing your ITR by the due date. Please ensure to file your ITR by the due date, else you will have to pay interest on tax liability as well as for the delay in filing of the ITR.