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LTCG will be considered for 87A relief as part of total income for FY 2024-25 / AY 2025-26

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amit

Software Consultant

116 Points Posted on 28 March 2025

Hi CAs,

Need urgent help in planning for LTCG for this FY 2024-25/ AY2025-26

Earlier, we used to get 87A relief for total income upto particular threshold (suppose currently 7 Lakh), that included LTCG from stocks as well

If same continued for current FY 2024-25/ AY 2025-26 as well....to plan LTCG

Illustration

if other taxable income is say 3.5 Lakh +LTCG 3 Lakh=6.5 Lakh < 7 Lakh

Income tax = 0 (after applying 87A rebate for income upto INR 7 Lakh )

Please confimr if above calc is correct for this FY2024-25/AY2025-26

BTW, understand as per budget for next FY2025-26 (LTCG is excluded from 87A relief)

Thanks in Advance

Replies (3)

Quick Summary

This discussion clarifies whether Long Term Capital Gains (LTCG) will be included in total income for the purpose of claiming the Section 87A income tax rebate for the Financial Year 2024-25 / Assessment Year 2025-26. While previously LTCG was considered, recent budget announcements suggest it may be excluded from 87A relief for future financial years, impacting tax planning for individuals with both capital gains and other taxable income.