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  5. I will file ITR under old regime for ₹9.5 lakh salary and ₹1.25 lakh LTCG in FY25. Is my tax zero?

Personal Finance News

I will file ITR under old regime for ₹9.5 lakh salary and ₹1.25 lakh LTCG in FY25. Is my tax zero?

rajeev kumar
By Rajeev Kumar

3 min read | Updated on May 21, 2025, 15:07 IST

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SUMMARY

The ITR filing for FY 2024-25 is expected to start soon. Under the old tax regime, a salaried person having taxable income below ₹5 lakh pays zero tax due to a rebate of ₹12,500 under Section 87A.

taxpayer filing itr

Salaried employees can file ITR after receiving Form 16. | Representational image source: Shutterstock

In this article, we have answered two tax-related queries recently asked by our readers. The first question is by Sandip Parmar, who will be filing his Income Tax Return for FY 2024-25 (AY 2025-26) under the old tax regime. He has shared the following details and wants to know his tax liability.
"If I make ₹9.5 lakh from salary and ₹1.25 lakh long-term capital gains from selling equity shares in FY 2024-25, and after deductions from salary (standard deduction, home loan EMI, PF, medical insurance payment, term insurance payment, NPS etc.) taxable income remaining is ₹4.8 lakh, what will be my tax liability in FY 2024-25 under the Old Tax Regime?"
Answer: There will be no tax liability under the old regime on both salary and LTCG, assuming LTCG from equity shares was realised on or after July 23, 2024. It will be possible due to the following rules:

  • Under the old regime, a person having taxable salary income below ₹5 lakh pays NIL tax due to a rebate of ₹12,500 under Section 87A.

  • On LTCG from equity shares realised on or after July 23, 2024, LTCG up to ₹1.25 lakh is exempted from tax. Hence, there will be NIL tax on Sandip's LTCG also.

The above calculation is only for FY 2024-25, for which taxpayers like Sandip can file returns till July 31, 2025.

Tax on Salary and LTCG in FY26

Question 2: Bhagwan Das Maheshwari has asked: "Am I eligible for tax rebate on ₹12.75 lakh salary and ₹2.2 lakh LTCG?"

He has not mentioned the financial year, the tax regime, or the source of his LTCG. We are assuming he is asking for the new tax regime and the current financial year (FY 2025-26), for which there has been a lot of confusion among taxpayers, and his LTCG is from equity shares.

We recently explained the taxation of LTCG and salary under the new tax regime in this article. Under the New Tax Regime in FY 2025-26, there is a rebate of ₹60,000 under Section 87A. But there are some conditions:
  • Taxable income should be below ₹12,0000
  • Income should not include any gains from equity shares or equity mutual funds.
  • If a person's total income, including LTCG from equity, is above ₹12 lakh, then the rebate will not apply.
  • In a person's total income, including LTCG from equity, is below ₹12 lakh, then the rebate will apply only on the normal/salary income.

So, in Bhagwan's case, the rebate will not apply as his total income, including LTCG from equity, is above ₹12 lakh.

Disclaimer: The views and opinions expressed above are those of respective experts/commentators and do not reflect the views of Upstox. This content is only for informational purposes and should not be considered investment or tax advice from Upstox.
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About The Author

rajeev kumar
Rajeev Kumar is a Deputy Editor at Upstox, and covers personal finance stories. In over 11 years as a journalist, he has written over 2,000 articles on topics like income tax, mutual funds, credit cards, insurance, investing, savings, and pension. He has previously worked with organisations like 1% Club, The Financial Express, Zee Business and Hindustan Times.

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