Budget and You: No tax on Rs 12 lakh or less? Not always!

Now, if your taxable income is Rs 12 lakh or less under the new tax regime, you pay zero tax. That's great news - unless your income includes capital gains from equity and equity-oriented mutual fund investments. That's because the rebate applies to salary and business income, while capital gains are taxed at special rates. So, if your annual income includes these gains, you may have to pay taxes despite staying within the Rs 12 lakh limit. What is Section 87A, and who benefits from it? Section 87A provides a tax rebate to individuals with taxable income up to a specified threshold. This rebate reduces yo