Ask me anything about Union Budget 2025

Taxation
42

From what date this change applies? Today?

43

Debt funds are not at a special rate. So they continue as normal and applicable for rebate like salary, FD income

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44

Since the benefits of 87A aren’t available for stcg on equity shares anymore, can we report stcg as business income and avail benefits of Presumptive income on that?

45

Hey @KD61

The change will become applicable from April 01, 2025 i.e. next financial year.

Thanks

46

@Quicko please reply on this

47

Hello @Ravi_Shankar

Yes rebate u/s 87A is not available against the special rate Income. Thus you need to pay tax on LTCG even if it is 7 lakhs.

However, you can claim basic exemption limit of 4 lakhs under the new regime in case you do not have any other income. Also, LTCG up to 1.25 lakhs is exempt which means if you do not have any other income, LTCG up to 5.25 lakhs is exempt under the new tax regime.

Thanks

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48

Call it total income (salary + LTCG)?

49

@Quicko Reply…

50

Hi, we just published a YouTube video covering all your questions in depth. Let us know if you need any further clarifications.

51

Hi … Can you please confirm if HUF income below 12 lakhs will be also be 0 tax ?

52

@Yash_Chhabra1

No,
As per Section 87A: Only resident individuals are eligible to avail rebate under this section.

53

Hi @Quicko

Professional who opt for 44ADA has standard deduction Rs 75000 ?

54

Hi @ramesh1985,

No, the ₹75,000 standard deduction is only available to salaried individuals reporting their income under the head ‘income from salary’.

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55

Hi
Suppose I have a LTCG of 4 Lakhs and a STCG of 4 Lakhs,how will the gains be taxed according to new tax regime .Should I consider the 12 lakh taxation limit when calculating taxes for capital gains?
Whatif I have a business income of 5 Lakhs and STCG of 4 Lakhs.How will I be taxed then?
Whatif I have a business income of 12 Lakhs and LTCG of 4 Lakhs.How will I be taxed?

56

@Quicko
What if one have salary income of 12.75 lacs and Ltcg on shares of Rs 1.25 lacs, & no other income.
Is there zero tax ?

57

@Quicko

Will there be any tax payable if STCG is booked on sale of Debt mutual funds in FY26 and if Total income (comprising interest income & STCG only) is less than 12 Lakhs (but more than 4 lakhs)?

58

Hello @vivek7 ,

STCG on debt mutual funds will be taxed at slab rates. Since, slab rate incomes are taxed at normal rate, you can claim the rebate u/s 87A .

Thus, if your total income includes only STCG from debt funds and interest income, then you can claim full rebate against your tax liability.

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59

Hello @Nsingh ,

As per the details mentioned by you, the total income will be ₹14L. LTCG will be exempt upto ₹1.25L and you will also get the benefit of ₹75k standard deduction. Thus there will be zero tax liability in this situation.

60

@Quicko
If I have a LTCG on indian equities of 2 lakhs,LTCG on US stocks of 3 lakhs,STCG on Indian equities of 3 lakhs.How should I calculate the taxes?

61

Hello @jaiyson ,

Assuming you do not have any other source of income, the ₹3 lakh in short-term capital gains (STCG) from Indian equities will be fully adjusted against the basic exemption limit, so no tax is payable on it.

For long-term capital gains (LTCG) on Indian equities of ₹2 lakh and US stocks of ₹3 lakh, the tax rate depends on when they were sold. If sold after July 22, 2024, both will be taxed at 12.5%. If sold on or before July 22, 2024, LTCG on Indian equities will be taxed at 10%, while LTCG on US stocks will be taxed at 20% with indexation.

1 Like