No Income Tax for upto !2L

Is the No Income Tax proposal upto 12L income is valid for Income tax that we will file this year or only next year ?

@Ddude
The Finance Act 2025 (Budget 2025) will apply to the financial year 2025-26. It proposes no income tax for incomes up to ₹1,200,000.

For the current financial year, there is no tax on incomes up to ₹700,000.

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So the increase in new TDS limit to 1L for senior citizen is also applicable from next financial year… right ?

@Ddude
Yes

I heard that upto 12L no tax but the slab says no tax upto 3 lakh and tax rate increases progressively. How does this 12L no tax theory work.

Are we to submit deductions such as NPS 2 lakh . Confused.

@neha1101
Section 87A provides a rebate on income tax for resident individuals whose total income does not exceed a specified limit. As per the latest provisions:

  • Eligibility: Available only to resident individuals.
  • Income Limit: The rebate is applicable if the total income does not exceed ₹12 lakhs.
  • Applicability: The rebate is applied before adding cess (such as health and education cess) to the tax liability.

This rebate effectively reduces the tax liability to zero for individuals with taxable income up to ₹12 lakhs.
Note- Rebate not allowed against any special income like STCG, LTCG.

"1200000 limit for New Tax Regime in which no deduction under Chapter VI allowed like LIC, PPF, Mediclaim etc


"

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Hi, some capital Gains are taxed as per IT slab.

Say capital Gains like debt mutual funds

I have income of 8 lakh salary.

Then 2 lakh income in debt funds taxed at IT slab.

Then 1 lakh stcg in equity is taxed at 20.8% since there is no rebate for this.

Pls tell me how it’s taxed.

@Manu_Manjunath.K.R
In FY 25-26, you liability to pay tax only on STCG @20% + Cess+ Interest if any