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

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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.

No relief u/s. 87A will be available over the capital gains charged at special rate.

Details of capital gains

example

LTCG more than 2.5L for listed shares

and other income is  4L

 

total = 6.5 L < 7L for FY 2024-25

 

till last year LTCG was counted in total income for purpose of 87A rebate 

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