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Income Tax Calculator: CBDT has released the major highlights of the finance bill, 2025, stating that the capital gains will be excluded from the calculation of Section 87A exemption.
Income tax calculator.
Income tax calculator: Finance Minister Nirmala Sitarman announced her budget speech in 2025 that no one would be Income tax Payed up to Rs 12 lakh on annual income “special rate income such as capital gains”. This creates confusion among taxpayers how capital gains will affect their tax capacity. Suppose, if it is Rs 1 lakh annual annual salary capital benefit in Rs 13 lakh, will it make them eligible for Rs 12 lakh Tax discountNow, CBDT has released major highlights of the ‘Finance Bill, 2025’, stating that capital gains will be excluded from the calculation of Section 87A exemption.
According to the CBDT document, which is available on its website, “It is proposed that where residents choose the new tax regime of Section 115BAC, in charge of income for tax at special rates (for example, under Section 111A The taxable capital gains, section 112, etc.) will be excluded from the calculation of Section 87A exemption. ,
This means that for example, you earn Rs 13 lakh in a year, including Rs 1 lakh from capital gains, this Rs 1 lakh will be excluded from Rs 13 lakh and you for income tax exemption under 87A Will become characters. Within a range of Rs 12.
Importantly, tax exemption on annual income of Rs 12 lakh is available only under the new tax regime. And, this limit of Rs 12 lakh increases to Rs 12.75 lakh after adjusting the standard deduction of Rs 75,000.
Finance Minister Nirmala Sitarman announced during her budget 2025, “Under the new regime, there will be no income tax payable for income of Rs 12 lakh (ie special rate of Rs 1 lakh per month like special income like capital income). Due to the standard deduction of Rs 75,000, this limit for salaried taxpayers will be Rs 12.75 lakh. ,
What are capital benefits and how are they taxed in India?
Capital gains arise when you sell your investment and get profit on it. For example, you bought the company shares for Rs 1 lakh and now sell it for Rs 1.20 lakh, it is Rs 20,000 for profit or capital gains.
There are two types of capital gains on the basis of tenure-alphemical capital gains (STCG) and long-term capital gains (LTCG)-and they attract various tax rates.
For unrestaded shares, the holding period is 24 months to qualify as long -term assets. For listed shares, it is 12 months. Below these boundaries, the profit is considered STCG.
Short -term capital gains (STCG) applies when equity share or equity mutual fund units are sold within 12 months of purchase. The first 15 percent tax was taxed, the budget 2024 had reduced the rate of STCG tax to 20 percent.
In addition, long -term capital gains (LTCG) taxation applies when equity property is held for more than 12 months. After the Union Budget 2024, the LTCG tax rate is 12.5 percent, which increased from 10 percent to the first.
Importantly, LTCG has a discount limit of Rs 1.25 lakh, which means that long -term capital gains are not taxed till this amount.
Income tax slab for FY 26
Under the new regime, the latest Union Budget is the Income Tax Slabs announced in 2025-26:
, Income up to Rs 4,00,000: Zero
, Income ranging from Rs 4,00,001 to Rs 8,00,000: 5%
– Income from Rs 8,00,001 to Rs 12,00,000: 10%
– Income from Rs 12,00,001 to Rs 16,00,000: 15%
– Rs 20,00,000 from income from Rs 16,00,001: 20%
– Income ranging from Rs 20,00,000 to Rs 24,00,000: 25%
– Income above Rs 24,00,000: 30%.
