Income tax calculation under new rates

Assume I have total income of 12 lakhs p.a. This includes 7 lakhs from pension and fd interest. And 5 lakhs from STCG from sale of equity. So tax on 5 lakhs will be @ 20%. What will be the tax rate on 7 lakhs ? Will it be 15% considering total income of 12 lakhs or 5% considering 7 lakhs only ?

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Quick Summary
This discussion clarifies how income tax is calculated under new rates, particularly when dealing with different income sources like investments and interest. It addresses a specific scenario where an individual has a total income of 12 lakhs, including STCG from equity and annuity income. The core question is whether the annuity income is taxed at a higher rate based on the total income or a lower rate applicable to that specific income type.

Pension commuted or not

Please ignore the word Pension in the above query. Pension I meant is annuity from pension plans of investments in Insurance companies.

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