Union Budget 2025 India Special Rate Income Taxable In these Cases Despite Income Below 12 Lakh

No rebate on special rate income: In the Union Budget, Finance Minister Nirmala Sitharaman has announced a complete tax free of the annual income of up to 12 lakhs in New Tax Regime. Such discussion is happening all around. If you too have really accepted so, then you can be cheated. Because under Section 87A of Income Tax, the income of 12 lakhs has been taxed free, it does not apply to special rate income. Earnings from lottery or equity come under special rate income. Apart from this, short term capital gains and long term capital gains also come under this. Therefore, if your annual income is less than 12 lakhs, but any part of the income has come from short -term capital gains or long term capital gains, then you will have to pay tax on it.

Understand this entire math in this way

Suppose your annual income is eight lakh rupees. That year you have earned three lakh 50 thousand rupees from lottery, so your income tax will not be zero. You have to pay tax at 10 percent on income of three and a half lakhs. That is, you will have to fill the income tax department of 35 thousand rupees. The rest of the short term and long term capital will also have to pay tax even if there is less than 12 lakh income. The tax calculation of short term and long -term capital gains is under section 111A and section 112 respectively. Provisions of section 87A are not applied to these.

Understand the 87-A rebate found in the budget

It is necessary to understand the technical aspect of tax free in the new tax regime of up to 12 lakh income around 12 lakhs. Under Section 87-A of the Income Tax Act, there is tax on income up to four lakhs. Income slabs of four to eight lakhs have to be taxed 5 percent, it will be up to 20 thousand rupees. Similarly, the total tax on income slab of 8 to 12 lakhs can be up to 60 thousand at the rate of ten percent. This time, a rebate has been given on tax up to 60 thousand under 87-A in the budget. In this way, the income of up to 12 lakhs has become tax free, but under 87-A, this tax rebate will not be achieved on short term capital gains or long term capital gains. In these cases, less than 12 lakh income will also have to be paid tax. In the income on which the rebate will be found under 87A, after filling the ITR to claim the rebate, the money of the rebate will come to the bank account of the return.

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