87A rebate for FY 2024-25 and 2025-26 under new regime

Is capital gain allowed under 87A in new regime for FY 2024 25

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Quick Summary
The Section 87A rebate has been updated for FY 2024-25 and 2025-26 under the new tax regime. For FY 2024-25, the rebate offers zero tax on income up to Rs 7 lakh, while FY 2025-26 offers zero tax up to Rs 12 lakh. Importantly, this rebate does not apply to income taxed at special rates, such as short-term and long-term capital gains.

Rebate is not applicable on incomes taxable at special rates.

So, it's not applicable in LTCG and STCG which are taxable at 10% and 15% respectively

The Section 87A rebate was revised by Finance Act 2025 for FY 2025-26. Under the new regime, the rebate is Rs 60,000 (effective zero tax up to Rs 12 lakh total income). For FY 2024-25, the rebate was Rs 25,000 (zero tax up to Rs 7 lakh). One important limit: the rebate is NOT available on special-rate income like STCG under Section 111A (15%) or LTCG under Section 112A (12.5%). So if your total income is Rs 11.5 lakh but includes Rs 2 lakh in STCG, the rebate applies only to the non-special-rate income tax, and you will still pay 15% on the STCG portion.

For a side-by-side breakdown of what works under old vs new regime for AY 2026-27, this [old vs new tax regime comparison](https://taxgarden.in/blog/old-vs-new-tax-regime-ay-2026-27-which-is-better) covers the rebate calculation with examples.

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