Per the new budget 2025-26, is income from sale of debt instrumented, dividends, FD all come under the 12L income or are they considered capital gains and taxable even if the total income is below 12L ?
Ramesh (SVP) (72 Points)
03 February 2025Per the new budget 2025-26, is income from sale of debt instrumented, dividends, FD all come under the 12L income or are they considered capital gains and taxable even if the total income is below 12L ?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182975 Points)
Replied 03 February 2025
Only the income charged at special rates will be excluded, not the interest from FD or dividend income or other capital gains charged at slab rate.
Kumar Sushank
(2 Points)
Replied 03 February 2025
No. You can take benefit of Rebate-87A against salary only. Capital Gain and Other Income will be charged as per the actual rates.
Suppose, you earned 9 Lacs as salary and 3 Lacs as capital gain. Then you can avail benefit of Rebate 87A for 9 Lacs only. Taxes will calculate on 3 Lacs as per the rate.
Ramesh
(SVP)
(72 Points)
Replied 03 February 2025
In essence, income made from debt, FD and dividends will be taxed per slab rate even if my total income is less then 12L.
Retired folks with no salary and only these incomes will not benifit if this is so.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182975 Points)
Replied 03 February 2025
I think you didn't get the essence of my reply.
Ramesh
(SVP)
(72 Points)
Replied 03 February 2025
Sorry I did not know what comes under special rates and hence did not understand your reply. Though the second response clearly states that only salary income and not others will gain from the new budget.
That is not income from FD, dividends and rental income even though the total income is less than 12L
Ramesh
(SVP)
(72 Points)
Replied 03 February 2025
Thanks to AI and you sir, I am now clear Dividend and sake of debt funds do not qualify under 87A but the rest salty, rental income and interest from FD being under normal tax slab will benefit from the new budget if total income is below 12L
Type of Income |
Special Re |
Interest from Fixed Deposits (FD) |
No |
Dividend Income |
Yes |
Rental Income |
No |
Gains from Sale of Debt Funds |
Yes |
Salary Income |
No |
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(182975 Points)
Replied 05 February 2025
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PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies