Can I avail rebate of Rs 12,500 for FY 2024-25 on equity LTCG if my taxable income is within Rs 5 Lakhs?

Published on / By M. Pattabiraman Twitter: @pattufreefincal

Published: March 23, 2025 at 11:00 am

A reader says, “This is about your article ‘Is 87 A Rebate Applicable for Capital Gains after Budget 2025‘ dated 3 February 2025 on your site. Can I avail of the Rs 12,500 rebate for FY 2024-25 on equity LTCG if my taxable income is within Rs 5 Lakhs?” Tax expert Manmohan Sethumadhavan responds.

 

About the author: Manmohan Sethumadhavan is a freelancer, investor, and personal finance enthusiast “in search of the absolute truth.” You can follow Manu on Twitter @ManuTsr. Also, read his articles:

The article mainly focuses on the 87A disallowance issue that started on 5th July 2024. There are two basic rules to start with. 1. There is no change in the 87A rebate for the old regime at any time. 2. For LTCG from equity, 87A is disallowed within section 112A itself; hence, 87A is not applicable for LTCG from equity u/s 112A irrespective of which regime opted.

All other rules are to be read in the context of the above. So, there is no change in rebate for the old regime; the rebate is applicable for all types of income, except LTCG from equity. Taxpayers can still opt for the old regime and avail of the rebate as before (which means except for LTCG from equity).

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For your specific case, you cannot avail of a rebate on LTCG if it is from Equity MF, even if it is in the old regime.