Neutral impactCorporate Action
Income up to ₹12.75 lakh? Know whether you pay zero tax on capital gains too under the new tax regime
Mint 1 hr ago·13 Sept 2026, 11:32 am
The new income tax regime in India offers a reduced tax rate structure, with individuals earning up to ₹12 lakh now paying zero tax on their salary income. This has led to a common question among investors: does this zero-tax benefit also apply to capital gains from equity investments?
The short answer is no. While the new regime lowers tax rates on salary, capital gains from equity shares are governed by a separate set of rules. Long-term capital gains (LTCG) from equity are currently taxed at a flat 12.5% with an exemption limit of ₹1.25 lakh per financial year. Short-term gains are taxed at the individual's slab rate. Therefore, even if your total income falls below the ₹12 lakh threshold, gains from equity are still subject to these specific capital gains taxes.
Investors should focus on the specific tax treatment of their investment returns rather than the overall income tax slab. The new regime is beneficial for those with high salaries and minimal capital gains, but it does not override the existing tax framework for equity investments. Keep an eye on any future policy changes that might alter these capital gains rules.
Excerpt from Mint
In the new tax regime, individuals earning up to ₹ 12 lakh can enjoy zero income tax, but can capital gains from equity investments also enjoy this benefit? Here's all you need to know. In the Union Budget for 2025-26, Finance Minister Nirmala Sitharaman announced that from financial year 2026-27, individuals earning…Read the original at Mint
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