Tax on income from other than salary per new budget

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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 ? 

Replies (7)

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.

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. 

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. 

I think you didn't get the essence of my reply.

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

 

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

 

Your satisfaction could be more important then the accuracy of AI....


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