Section 87A Rebate Aur Special Rate Income: LTCG Par Milti Hai Ya Nahi?
New Regime AY 2026-27
New Regime (Rebate)
Old Regime (≤₹5L)
u/s 112A
| Income Type | Old Regime (≤₹5L) | New Regime (≤₹12L) |
|---|---|---|
| Salary Income | Yes ✓ | Yes ✓ |
| Interest Income (FD/savings) | Yes ✓ | Yes ✓ |
| House Property Income | Yes ✓ | Yes ✓ |
| LTCG u/s 112A (equity >₹1.25L) | No ✗ | No ✗ |
| STCG u/s 111A (equity STT-paid) | No ✗ | No ✗ |
| LTCG u/s 112 (debt/property) | Yes ✓ | Yes ✓ |
Section 87A rebate ek aisi tax concession hai jo qualified taxpayers ka income tax shunya kar deti hai — but iska ek confusing aspect hai: kya ye LTCG (Long Term Capital Gains) ya STCG (Short Term Capital Gains) par apply hoti hai? FY 2024-25 (AY 2025-26) mein ek bada controversy tha ITR portal par. AY 2026-27 mein CBDT ne clarity di hai — is article mein poora scene samjhate hain.
Section 87A Rebate Ka Basic Concept
Section 87A kehta hai: agar aapki total income ek threshold se kam ya barabar hai, to aapko tax liability se ek rebate milegi (actual tax ya rebate amount, whichever is lower).
AY 2026-27 ke liye:
- Old Tax Regime: Total income ≤ ₹5L → rebate up to ₹12,500
- New Tax Regime: Total income ≤ ₹12L → rebate up to ₹60,000 (Finance Act 2025 se enhanced)
"Total income" mein sab kuch aata hai — salary, rent, FD interest, capital gains. Aur yahi problem ki jad hai.
Special Rate Income Kya Hota Hai?
"Special rate income" woh income hai jis par fixed/flat tax rate lagti hai — normal slab rates se alag:
- LTCG u/s 112A: Listed equity shares/equity mutual funds — ₹1.25L se upar 12.5% (Budget 2024 ke baad, pehle 10%)
- STCG u/s 111A: Listed equity STT-paid — 20% (Budget 2024 ke baad, pehle 15%)
- LTCG u/s 112: Debt mutual funds/property (indexation waale cases) — 20% — but isko "special rate" treatment alag hai
Key distinction: 112A aur 111A wale gains par rebate nahi milti. 112 (property LTCG indexation wali) par milti hai.
FY 2024-25 Ka Controversy — Kya Hua Tha?
FY 2024-25 mein (AY 2025-26 filing ke waqt) ek badi controversy thi: ITR filing portal Section 87A rebate LTCG 112A income par bhi allow kar raha tha (before July 2024 update). Baad mein portal ne update karke ye rebate block ki — aur jo log pehle file kar chuke the unhe revised return ka option mila.
ITR portal ka yeh behavior "allow" karna aur phir "block" karna se taxpayers confuse hue. Lekin law ke hisab se rebate special rate (112A, 111A) income par nahi milti — yeh CBDT ka consistent stand hai.
CBDT Ka Clarification — Official Stand
CBDT ne consistently clarify kiya hai:
"Rebate under Section 87A is not available against tax on special rate income under Sections 111A and 112A."
Reason: Section 87A ke wording mein "total income" se tax nikalta hai, lekin special rate income ke liye tax separately calculate hoti hai at flat rate — rebate income tax against "normal income tax" ke liye designated hai. Courts ne bhi mostly is interpretation ko support kiya hai.
Practical Example: Kya Fark Padta Hai?
Ek employee ki income ₹8L salary + ₹2L LTCG (equity, Section 112A) = total ₹10L hai. New regime mein:
- Taxable income (after ₹75K standard deduction): ₹9.25L salary part
- LTCG part: ₹2L − ₹1.25L exemption = ₹75K taxable @ 12.5% = ₹9,375 tax
- 87A rebate available on salary part? Yes (if total income ≤₹12L)
- 87A rebate on ₹9,375 LTCG tax? No — this is special rate income tax
To employee ko ₹9,375 LTCG tax alag se pay karna hoga, even if normal income tax zero ho.
AY 2026-27 Mein Aapko Kya Karna Chahiye?
- LTCG 112A income hai to 87A rebate expect mat karein us par
- ITR portal ka tax computation carefully review karein — agar rebate galat show ho rahi hai to correct karein before submission
- Capital gains transactions ₹1.25L se kam rakhein to LTCG tax-free zone mein rehein
- Marginal cases mein (total income ₹11-12L bracket) tax advisor se calculate karwayein
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