Taxable Income or Not

• For ₹12 Lakhs Capital Gain alone: The total tax liability is ₹1,00,750 (for listed equity LTCG) or ₹1,17,000 (for property/other asset LTCG) because the unused basic exemption of ₹3 Lakhs reduces the taxable gains.

• For ₹12 Lakhs Capital Gain + ₹4 Lakhs Other Income (Total ₹16 Lakhs): The total tax liability rises to ₹1,44,950 (equity LTCG) or ₹1,61,200 (property LTCG) because the other income fully utilizes the basic exemption limit, making the full capital gain taxable at special rates.

Sir Thanks to reply 

My query is that my client (Individual) Capital Gain in Mutual Funds Income 12 Lac so it's considered under slab rate as per new tax regime or levied a special rate on capital gain?

A couple of things worth clarifying before finalising the computation, since the answer changes materially depending on them:

1) What kind of capital gain is this? LTCG/STCG on listed equity/equity MF is taxed at special flat rates (LTCG above the Rs 1.25 lakh exemption at 12.5%, STCG at 20%, under the current structure), while LTCG on property or other assets is taxed differently (with or without indexation depending on the asset and acquisition date). The tax outcome on Rs 12 lakh of gain is very different depending on which bucket this falls into - worth specifying the asset type.

2) The basic exemption "spillover" rule matters here. For a resident individual, if the other (non-capital-gains) income is below the basic exemption limit, the shortfall can be adjusted against capital gains before special-rate tax applies - but only in that order, and only for residents (not for NRIs). With Rs 4 lakh of other income against a basic exemption limit that's typically higher under the new regime, there may be some unexhausted exemption available to set off against the capital gain component, which would reduce the special-rate tax base slightly.

3) New regime vs old regime. Since Tax Year 2026 per the new Income Tax Act 2025 defaults to the new regime unless opted out, check whether your client would actually benefit from opting for the old regime instead - retired individuals with deduction-eligible investments (80C, medical insurance under 80D, etc.) sometimes come out ahead under the old regime despite the higher slab rates, and that comparison needs the deduction picture, not just the income figures.

Once you confirm the asset type behind the Rs 12 lakh gain, the computation can be nailed down precisely - right now the special-rate treatment is the variable that matters most.