Wednesday, March 26, 2025

Can I avail rebate of Rs 12,500 for FY 2024-25 on fairness LTCG if my taxable earnings is inside Rs 5 Lakhs?

A reader says, โ€œThat is about your article โ€˜Is 87 A Rebate Relevant for Capital Good points after Price range 2025โ€˜ dated 3 February 2025 in your web site. Can I avail of the Rs 12,500 rebate for FY 2024-25 on fairness LTCG if my taxable earnings is inside Rs 5 Lakhs?โ€ Tax skilled Manmohan Sethumadhavan responds.

 

Concerning the writer: Manmohan Sethumadhavan is a freelancer, investor, and private finance fanatic โ€œin the hunt for absolutely the reality.โ€ Youโ€™ll be able to comply with Manu on Twitter @ManuTsr. Additionally, learn his articles:

The article primarily focuses on the 87A disallowance situation that began on fifth July 2024. There are two fundamental guidelines to begin with. 1. There isnโ€™t a change within the 87A rebate for the outdated regime at any time. 2. For LTCG from fairness, 87A is disallowed inside part 112A itself; therefore, 87A is just not relevant for LTCG from fairness u/s 112A no matter which regime opted.

All different guidelines are to be learn within the context of the above. So, there isnโ€™t a change in rebate for the outdated regime; the rebate is relevant for every type of earnings, besides LTCG from fairness. Taxpayers can nonetheless go for the outdated regime and avail of the rebate as earlier than (which suggests apart from LTCG from fairness).

On your particular case, you can not avail of a rebate on LTCG whether it is from Fairness MF, even whether it is within the outdated regime.

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