ITR Form 3 Combined Salary & Capital Gains Tax Calculator 2026

Calculate combined tax on Salary + STCG (20%) + LTCG (12.5%) under New Tax Regime (FY 2026-27 / Budget 2024 rules)

1. Salary Income Inputs

₹
₹1.00 L₹1.00 Cr
Standard Deduction (₹75,000)Automatically allowed under New Tax Regime for salaried employees.
₹
₹0₹5.00 L

2. Capital Gains Inputs (Equity Shares & Mutual Funds)

₹
₹0₹50.00 L
₹
₹0₹50.00 L
₹
₹0₹1.25 L

Total Net Tax Liability

₹1.02 L

Effective Tax Rate: 6.38% of total gross income (₹16.00 L)

Salary Tax₹52,500
STCG Tax (20%)₹30,000
LTCG Tax (12.5%)₹15,625

Income Distribution & Tax Share

Net In-Hand Income:₹14.98 L
Salary Tax:₹52,500
STCG Tax (20%):₹30,000
LTCG Tax (12.5%):₹15,625

Consolidated Tax Calculation Audit Schedule

Heads of Income / Tax StepAmount (₹)Applied Slabs & Statutory Rules
1. Gross Annual Salary (CTC)₹12.00 LGross salary received from employment
2. Standard Deduction (Sec 16(ia))− ₹75,000Flat ₹75,000 deduction under New Regime
4. Net Taxable Salary Income₹11.25 LTaxed under FY 2026-27 New Regime Slabs
5. Salary Tax₹52,500Slab tax on ₹₹11.25 L
6. Short-Term Capital Gains (STCG ≤ 12 Months)₹1.50 LEquity holdings ≤ 12 months
7. STCG Tax (20%)₹30,000Flat 20% tax rate on STCG gains
8. Long-Term Capital Gains (LTCG > 12 Months)₹2.50 LEquity holdings > 12 months
9. LTCG Annual Exemption Applied (Sec 112A)− ₹1.25 LFirst ₹1,25,000 of LTCG per financial year is tax-free
10. LTCG Tax (12.5%)₹15,62512.5% tax on taxable LTCG (₹1.25 L)
12. Health & Education Cess (4%)₹3,9254% on Net Base Tax (₹98,125)
Total Net Tax Liability₹1.02 LFinal payable tax to Income Tax Department

Salary vs Capital Gains Tax Visual Comparison

Visual comparison between Gross Salary, Capital Gains Profits, Tax Liability, and Net In-Hand Income.

Composite Tax Analytics

Multi-Stream Income Taxation: Integrating Salary, Capital Gains, and Professional Revenue

Taxpayers earning income across multiple heads (salaried employees with stock portfolios, ESOPs, rental properties, or side consulting) must navigate distinct statutory tax rates: progressive slab rates for regular income versus special fixed rates (12.5% LTCG, 20% STCG) for market gains.

ITR-2 vs ITR-3 Classification

Use ITR-2 if you have salary, house property, and capital gains with zero business income. Switch to ITR-3 if you engage in intraday trading, F&O derivatives, or independent consulting.

Surcharge Capping on Capital Gains

While regular salary income exceeding ₹5 Crores can attract up to a 25% surcharge under the New Regime, surcharges on listed equity capital gains under Sections 111A and 112A are capped at a maximum of 15%.

Compliance & Regulations

Composite Income & ITR-2/ITR-3 FAQs

Guidelines on multi-source income reporting and tax optimization.

Can Section 80C deductions reduce my tax liability on capital gains?

No. Chapter VI-A deductions (including Section 80C, 80D, 80G) can only be deducted from your regular slab income (salary, house property, interest). They cannot be claimed against special-rate capital gains like equity STCG (Section 111A) or LTCG (Section 112A).

Does capital gains income push my salary into a higher tax slab?

No. Regular salary income is taxed strictly according to the statutory slab thresholds. Capital gains are taxed at special isolated rates. However, capital gains are included when determining your total income for surcharge thresholds.

Combined tax, with your numbers

Standard Formula
Total = Slab tax on salary + 20% STCG + 12.5% LTCG over ₹1.25L, less 87A rebate, plus surcharge and 4% cess
Live Calculation (Plugging Your Values)
Salary income (Salary):₹12.00 L
Short-term gains (STCG):₹1.50 L
Long-term gains (LTCG):₹2.50 L
Total tax (Tax):₹1.02 L
Substituted Equation:
₹12.00 L salary plus gains = ₹1.02 L total tax
Total tax payable:₹1.02 L

Capital gains are taxed at their own rates and never at your slab. The section 87A rebate applies only to the slab tax on salary, never to these gains, though the ₹12 lakh eligibility test is run on total income including them. Surcharge on 111A and 112A gains is capped at 15% however high the income.

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